SENATE RESOURCES COMMITTEE April 19, 1996 3:45 p.m. MEMBERS PRESENT Senator Loren Leman, Chairman Senator Drue Pearce, Vice Chairman Senator Steve Frank Senator Robin Taylor Senator Georgianna Lincoln MEMBERS ABSENT Senator Rick Halford Senator Lyman Hoffman COMMITTEE CALENDAR -- CONFIRMATION HEARING ON BOARD OF GAME APPOINTEES: ANN RUGGLES, GREG ROCZICKA, VIC VAN BALLENBERGHE CS FOR HOUSE BILL NO. 388(RES) am "An Act revising laws relating to oil and gas leasing as related to land previously the subject of a written best interest finding; amending provisions setting out exceptions to sales, leases, or other disposals for which a revised written best interest finding is not required; encouraging annual offer of land for oil and gas leases if the land was the subject of a best interest finding; and modifying the statement of purpose in the Alaska Land Act as it applies to oil and gas leasing to provide for annual lease sales." PREVIOUS SENATE COMMITTEE ACTION HB 338 - See Joint Senate/House State Affairs Committee minutes dated 10/5/95 and 1/23/96. WITNESS REGISTER Loren Croxton P.O. Box 1410 Petersburg, AK 99833 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Bill Folsom Box 2408 Palmer, AK 99645 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Roy Burkhart Box 204 Willow, AK 99688 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Leonard Haire Box 879030 Wasilla, AK 99687 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Lynn Levengood 1008 16th Ave. Fairbanks, AK 99701 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Bonnie Williams 1335 Sunny Slope Road Fairbanks, AK 99709 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Tom Scarborough 1676 Taroka Drive Fairbanks, AK 99709 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game David Williams 1335 Sunny Slope Road Fairbanks, AK 99709 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Katherine Richardson P.O. Box 80766 Fairbanks, AK 99708 POSITION STATEMENT: Supports appointment of Ann Ruggles to the Board of Game Ralph Seekins, President Alaska Wildlife Conservation Association 1625 Old Steese Highway Fairbanks, AK 99701 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Jack Stoebauer 18713 Upper Skyline Drive Eagle River, AK 99577 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Leo Keeler Friends of McNeil River P.O. Box 190647 Anchorage, AK 99519 POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Stephan Wells P.O. Box 202022 Anchorage, AK 99520 POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Nicole Di Padua 4520 Edinburgh Drive Anchorage, AK 99515 POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Matt Singer Alaska Wildlife Alliance P.O. Box 202022 Anchorage, AK 99520 POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Dick Bishop, Executive Director Alaska Outdoor Council P.O. Box 73902 Fairbanks, AK 99707 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vick Van Ballenberghe to the Board of Game Sarah Hannan 7348 North Douglas Highway Juneau, AK 99801 POSITION STATEMENT: Supports confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Joel Bennett Juneau, AK POSITION STATEMENT: Supports confirmations of Ann Ruggles, Vic Van Ballenberghe & Greg Roczicka to the Board of Game Mike Tinker P.O. Box 25197 Ester, AK 99725 POSITION STATEMENT: Opposes confirmations of Ann Ruggles and Vic Van Ballenberghe to the Board of Game Representative Norman Rokeberg State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of HB 388 Pat Foley Alaska Oil & Gas Association 121 W. Fireweed Lane Anchorage, AK 99503 POSITION STATEMENT: Testified in support of CSHB 388(RES) am Bill Stamps Alaska Support Industry Alliance P.O. Box 130 Kenai, AK 99611 POSITION STATEMENT: Testified in support of CSHB 388(RES) am George Findling ARCO Alaska, Inc. P.O. Box 100360 Anchorage, AK 99516 POSITION STATEMENT: Testified in support of CSHB 388(RES) am Ken Boyd, Director Division of Oil & Gas Department of Natural Resources 3601 C St., Suite 1380 Anchorage, AK 99503-5948 POSITION STATEMENT: Testified in support of CSHB 388(RES) am Kevin Tabler, Land Manager Unocal Corporation 909 W. 9th Ave. Anchorage, AK 99501 POSITION STATEMENT: Testified in support of CSHB 388(RES) am ACTION NARRATIVE TAPE 96-59, SIDE A Number 001 CHAIRMAN LEMAN called the Senate Resources Committee meeting to order at 3:45 p.m. He stated the first order of business would be confirmation hearings on the governor's appointees to the Board of Game, and he noted the presence of Larry Holmes, Chairman of the Board of Game. ANN RUGGLES , making her presentation to the committee via the teleconference network from Fairbanks, stated she is by training both an anthropologist and a wildlife biologist. Her income is derived by teaching biology at the University of Alaska Fairbanks. Ms. Ruggles said her interest in serving on the Board of Game in the past and now is that she is keenly interested in the interface between science and policy. She recognizes that science does not have all the answers. She said society, when it decides it would like something from a system, needs to rely upon science, but then it must also turn to sociological aspects, legal aspects, political aspects, ethics and culture to determine how we are actually finally going to manage wildlife, she said. Number 053 CHAIRMAN LEMAN pointed out he has received many negative messages concerning her membership on the board, and he asked if she could expand on why she has been so controversial, and how she sees herself serving and being able to deal with the considerable number of the public who may think otherwise. MS. RUGGLES said she is not sure why she would be termed "controversial" although she is sure that there are people who do not share a value system with her, people who have different goals than she may have, and people who may wish to see a Board of Game that is maybe more narrowly focused and gives limited representation to the different values which exist in this state. While serving on the board, she has been a proponent of conservation of wildlife population. Number 122 SENATOR LINCOLN noted Ms. Ruggles participated in the Alaska wolf summit in 1993, and she asked if she would explain what her participation was and her position during that summit. MS. RUGGLES explained she was invited to participate because she had been a member of the wolf management planning team and she was there to speak for them. She said the Board of Game determined that the state needs to be managing intensively, that normal hunting and trapping will not resolve the issue, that we do need to turn to looking at wolf control. CHAIRMAN LEMAN asked for Ms. Ruggles philosophy of hunting. MS. RUGGLES responded that hunting is a legitimate activity, one that many people participate in and one that is certainly right and proper. CHAIRMAN LEMAN noted a letter was received from the Alaska Wildlife Alliance stating they believe that the Board of Game's structure and process needs serious reform, that the legal mandate of the board needs to be changed. He asked Ms. Ruggles if she agreed with that assessment. MS. RUGGLES responded that she does not believe the Board of Game's process or the Board of Game's mandate is posing problems. She believes it is an excellent process, and it is a way by which the people in Alaska can have a voice in how a public resource is going to be managed. Number 200 CHAIRMAN LEMAN thanked Ms. Ruggles for her participation, and then invited Greg Roczicka to make his presentation to the committee. GREG ROCZICKA said he has strongly advocated that if people have complaints or problems with management systems, they ought to be involved, so in December he submitted his name to serve on the board. He feels he brings a strong and positive background to the board having for the last years worked on the front lines of conflict and controversy regarding game management issues, working between the village governments and the state and federal governments. CHAIRMAN LEMAN asked Mr. Roczicka if he thought his background in being associated with the Associated Village Council Presidents could create conflicts or if it would be an asset. MR. ROCZICKA responded that even in his work with that agency he tries to maintain an objective view, and he feels he would have no problem at all separating himself from any advocacy or perception of advocacy that that organization has in his work with the board. He added he has participated in the board process over the years, and when he sat in on his first Board of Game meeting in March, he was impressed with what he sees to be a real balance on the board that in many boards in the past was not there. CHAIRMAN LEMAN thanked Mr. Roczicka for his participation and then invited Vic Van Ballenberghe to make his presentation to the committee. Number 282 VIC VAN BALLENBERGHE said the question of why a person would want to be on the Board of Game is commonly asked. Despite the fact that being on the board is time consuming and stressful, and despite that no matter what action the board takes, a significant segment of the public seems to be disappointed, there are rewards. He feels he can contribute something to the board. He feels he is well qualified to serve on the board both professionally and personally. Mr. Van Ballenberghe said he is a professional wildlife biologist with about 30 years experience. He came to Alaska in 1974 and began working for the Alaska Department of Fish & Game. He left that job in 1980 to take a position as a research biologist with the Forest Service. In that capacity, he has worked mainly on researching moose and wolves. He has been an avid observer of wildlife and wildlife issues and the processes that relate to wildlife management since he has been in the state. On a personal level, he also has a strong and lifelong interest in wildlife issues having grown up on a farm and being exposed to hunting early on. He said he has been a hunter, a trapper, and a fisherman all of his life. As a hunter, he has a keen interest in trying to relate to other hunters, and he thinks he understands what hunters desire in the way of wildlife and wildlife management in the state. Mr. Van Ballenberghe noted that he served a previous term on the board from 1985 to 1988, and that they grappled with many of the same issues that are around today. He feels he learned on the board during those years, and he admitted that if he had to do some of the things over again, he would do them a little differently. Mr. Van Ballenberghe said wildlife management issues are contentious in the state of Alaska at this point in time, and he feels that progress can be made toward healing some of the riffs that have occurred as a result of the contentious debate, and he would like to contribute to doing that. He thinks there is middle ground on many of these issues, and a consensus can be worked out. Number 345 SENATOR LINCOLN said she has received letters questioning whether Mr. Van Ballenberghe would be able to differentiate between his position in the federal level versus the state's interest, and she asked if he thinks with game issues he could objectively remove himself as a federal employee and look at it as in the best interest of the state. MR. VAN BALLENBERGHE replied that he thinks he can and he thinks he did in his previous term on the board in which he served in exactly the same capacity. During that three- year period when issues such as the Tongass National Forest came up, he abstained from voting and those abstentions numbered only three or four. He said he would adopt the same approach this time around the appearance of conflict of interest by abstaining on those very few occasions when there are proposals that relate to forest service land. SENATOR LINCOLN asked if he left the Alaska Department of Fish & Game on good terms. MR. VAN BALLENBERGHE responded that he did, and that he left that job because he felt the job with the Forest Service was more suited to his interests--the opportunity to do research on moose and wolves. SENATOR LINCOLN asked if as a scientist, could he set all of this science aside and just use good old common sense. MR. VAN BALLENBERGHE said he could, and he added there are times when you have to look at the art as well as the science of wildlife management and come to some decision. Many of the management issues are in part based on science, but also in part based on a lot of other human considerations. SENATOR LINCOLN asked if he thought he could represent a balance between the rural, bush and urban areas of the state, as well as what he thinks hunters desire in wildlife management in the state. MR. VAN BALLENBERGHE said he thinks hunters desire a lot of opportunity to hunt and that is very clear with some of the issues that have come forth very recently before the Legislature with regard to intensive management, etc., and he thinks that spawned as a result of dissatisfaction with the opportunity and the ability to hunt. He also believes he has a good understanding of rural and bush concerns in addition to urban concerns, and that he can represent a balance between them. CHAIRMAN LEMAN noted he received letters and comments identifying Mr. Van Ballenberghe as controversial, and he asked if he knew why they might be targeting him. MR. VAN BALLENBERGHE responded that he doesn't consider himself to be controversial; he considers himself to be pretty middle of the road on wildlife issues. In his past term on the board, there were numerous instances in which he supported hunting and hunters, and he thinks his current view is strongly supportive of hunting and hunters. Number 469 CHAIRMAN LEMAN opened the confirmation hearing to public comment. LOREN CROXTON , testifying from Petersburg, said many things have changed in game management with the encroachment of the federal bureaucracy, and he thinks it would be an error to appoint a federal employee to the game board at this point in time. He thinks at least the perception of conflict would be most difficult for Mr. Van Ballenberghe. He said Ms. Ruggles is a non consumptive of the fish and game resources, and while he believes that there is more than one legitimate use for our game and resources, he thinks it is time to for her to move on from her seat on the Board of Game. He suggested that before Mr. Roczicka is confirmed, someone must point out to him what the Alaska Constitution says and why it does not allow a priority use. BILL FOLSOM , testifying from the Mat-Su LIO, stated he is the current president of the Mat Valley Sportsmen, and although they haven't had a board meeting relating to these confirmations, all of the people he has talked to seem to be of the same mind--they are opposed to the confirmation of both Ann Ruggles and Vic Van Ballenberghe because they don't believe either one has the proper philosophy for the sustained use of game for consumptive use. He thinks some of these philosophies are also causing splits among hunters using different means of taking of game by causing regulations that eliminate their hunting methods. ROY BURKHART , a resident of the Mat-Su, voiced his opposition to Ann Ruggles' appointment, mainly because she has her mind made up before the public hearing ever starts. He said if all the game boards would be like her, there's no point in having the public input. He is also opposed to Mr. Van Ballenberghe's appointment to the board. He said if both of these people were appointed, there would be two biologists on the game board, and the one thing Alaska is not short of is studies and biologists' studies. He added that it is important to have people on the game board that will listen, evaluate the information, and act on the information. Number 560 LEONARD HAIRE , a 22-year resident of the Mat-Su Valley, stated his opposition to Ann Ruggles and Mr. Van Ballenberghe. He said every time there is vote on motorized access, Ms. Ruggles' mind is already made up, and the same applies to Mr. Van Ballenberghe. LYNN LEVENGOOD , testifying from Fairbanks, voiced his opposition to the appointment of Ms. Ruggles because of the way she has voted on game issues while serving on the board in the past. He is also opposed to Mr. Van Ballenberghe's appointment because of the his federal employment and his position on opposing predator control. BONNIE WILLIAMS of Fairbanks stated her opposition to the confirmations of Mr. Van Ballenberghe and Ms. Ruggles to the Board of Game. She said the issues Alaska faces involving game are highly volatile and controversial. She said we need appointees who will start at neutral, listen discerningly to all sides, carefully compile the real facts, and finally reach wise decisions. TOM SCARBOROUGH of Fairbanks voiced his opposition to the appointments of Ms. Ruggles and Mr. Van Ballenberghe, because in his opinion, both of these individuals voted to violate the intensive management statutes currently on the books. DAVID WILLIAMS of Fairbanks stated his opposition to the appointment of Mr. Van Ballenberghe because he believes that as a federal employee, Mr. Van Ballenberghe cannot fairly represent Alaskan interests. He is also opposed to the confirmation of Ann Ruggles because he believes she will only bring discord to the Board of Game during these times when the board is under attack by outside sources. KATHERINE RICHARDSON , testifying from Fairbanks, stated her strong support for the reappointment of Ann Ruggles to the Board of Game. She believes Ms. Ruggles takes her seat on the board very seriously and works very hard. Ms. Ruggles attends the meetings regularly, and when she is there, she listens to people and gives thoughtful and constructive comments. She sees Ms. Ruggles as both a biologist and realist--she is looking to the future as well as the present. RALPH SEEKINS , the president of the Alaska Wildlife Conservation Association testifying from Fairbanks, voiced their opposition to the confirmations of Ann Ruggles and Mr. Van Ballenberghe. They don't believe Ms. Ruggles has represented or voted in favor of consumptive use of wildlife, except when it was a easy vote and her anti-vote didn't make any difference. She is not an advocate of hunting by humans, and she does not support the Alaska Constitution regarding the highest priority of wildlife for consumptive use. The association opposes Mr. Van Ballenberghe because they believe that a federal biologist employed by the federal government, whose department he works for wants to take over the management of fish and game in the state of Alaska and is already implementing plans to do so, should not be on the Board of Game. JACK STOEBAUER , representing the Alaska Boating Association and testifying from Anchorage in opposition to the confirmations of Ann Ruggles and Mr. Van Ballenberghe, said they know how these two handle biological versus social conflicts. He noted that in Game Unit 28, the Department of Fish & Game recommended to the Board of Game to increase the harvest of moose in that area. However, Ms. Ruggles and Mr. Van Ballenberghe argued to remove the most efficient, safe and environmentally friendly means used by hunters in that area, which is the air boat. LEO KEELER , representing Friends of McNeil River and testifying from Anchorage, stated their support for the confirmations of Ann Ruggles and Mr. Van Ballenberghe. He said both individuals have served on the board in the past, and he thinks the average Alaskan hunter is of the opinion that they have done a good job. STEPHAN WELLS , testifying from Anchorage, voiced his support for the confirmations of Ann Ruggles and Mr. Van Ballenberghe. While he is not a hunter nor does he oppose hunting, he believes non- consumptive users need specific representation on the board. However, he does not believe that either Ms. Ruggles or Mr. Van Ballenberghe fulfills that need because he doesn't consider either one of them to be primarily interested in non-consumptive use. He said they have both demonstrated that they are fair-minded individuals and will at least listen to his point of view along with those of others. NICOLE DI PADUA , testifying from Anchorage, stated her support for the confirmations of Ann Ruggles and Mr. Van Ballenberghe. She noted she has attended board meetings in Anchorage and Fairbanks, and the last meeting in Fairbanks presented a more balanced board. She said the two nominees questioned the individuals testifying in a intelligent and intensive manner. She believes two nominees with degrees in wildlife management is a big plus for the board. MATT SINGER , representing the Alaska Wildlife Alliance and testifying from Anchorage, voiced their support for the confirmations of Ann Ruggles and Mr. Van Ballenberghe because they bring a much needed voice to the board at a time when the public is becoming increasingly frustrated with the wildlife policy process. He said their prior experience on the board and professionals backgrounds in biology are qualities that will serve them well on this board. He stressed that while the Alliance supports Ms. Ruggles and Mr. Van Ballenberghe, they by no means agree with them all of the time, and they respect them both for being fair and open to public input. Number 155 DICK BISHOP , Executive Director, Alaska Outdoor Council, stated that based on their members' experience in working with Ann Ruggles and Mr. Van Ballenberghe, they do not believe the best interests of sound conservation and fair allocation of Alaska's game resources will be served. He said the Board of Game is in a very important position to manage for the interests of all users, but in particular, the Alaska Outdoor Council's concern is the interests of hunters, trappers, and other consumptive users. He asserted that those who are generally opposed to hunting, opposed to management, opposed to trapping, who seek to limit those activities in any possible way, either on a large or small scale, are generally supporting the confirmations of Ms. Ruggles and Mr. Van Ballenberghe. SARAH HANNAN , a lifelong Alaskan and a lifelong hunter, said the policy and purpose of the Board of Game is to make decisions that are complex, and it is most important in a board process to have a diversity of views. She said the best policy is made when you have two adversaries talking it out. She urged that the committee take into consideration the credentials of Ms. Ruggles and Mr. Van Ballenberghe. JOEL BENNETT of Juneau voiced his support for the confirmations of Ms. Ruggles, Mr. Van Ballenberghe and Mr. Roczicka. He knows Ms. Ruggles and Mr. Van Ballenberghe personally, and he believes they bring a great measure of competence, experience and diversity to the board. He believes that all three appointees feel strongly that hunting is a critical and justified activity in this state, one to be both respected and continued responsibly in every way. He also believes it is important to have professionals sitting on the board. MIKE TINKER , testifying from Fairbanks, stated his opposition to the confirmations of Ms. Ruggles and Mr. Van Ballenberghe, because both of them are not flexible on their philosophy. He said one of the things the game board has to do is to take the new regulatory processes that are coming, consider the difficult issues, and find some middle ground, and he doesn't see enough flexibility in these two individuals to do that. Number 356 VIC VAN BALLENBERGHE , responding to the testimony on his appointment to the Board of Game, said he doesn't believe he has spoken personally to any of the people that came forth to testify against him. He said they have picked out a few choice examples of things that they perceived were done on the board in their disfavor. He said there are many examples of where the Board of Game provided hunting opportunities for hunters, and very few examples where that was not the case. He added that to pick out a few of those examples and emphasize those is a distortion of what the board actually did. SENATOR TAYLOR asked if it was true that at a recent meeting of the Board of Game, they enacted a regulation which provides that if an individual shoots a black bear, he will now be required to eat various portions of the black bear. MR. VAN BALLENBERGHE acknowledged that was correct, but he pointed out that he voted against it. He also clarified that it wasn't to eat, it was to salvage portions of the black bear. He said he think it grew from the whole issue of baiting bears and the perception that there was black bear meat going to waste and it should be salvaged. Number 520 There being no further testimony on the Board of Game appointees, CHAIRMAN LEMAN closed the confirmation hearing.  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. There being no further business to come before the committee, the meeting was adjourned at 5:30 p.m.