SENATE RULES COMMITTEE April 27, 1999 12:00 p.m. MEMBERS PRESENT Senator Tim Kelly, Chair Senator Mike Miller Senator Drue Pearce Senator Johnny Ellis MEMBERS ABSENT Senator Loren Leman, Vice Chair COMMITTEE CALENDAR SENATE BILL NO. 125 "An Act relating to school crisis response planning." -MOVED ALL VERSIONS OF SB 125 OUT OF COMMITTEE SENATE BILL NO. 134 "An Act authorizing the Alaska Oil and Gas Conservation Commission to determine the amount of and to collect a charge for operating wells subject to the commission's jurisdiction, and to allocate expenses of investigation and hearing, and repealing the oil and gas conservation tax; and providing for an effective date." -MOVED ALL VERSIONS OF SB 134 OUT OF COMMITTEE PREVIOUS SENATE COMMITTEE ACTION SB 125 - See HESS minutes dated 4/19/99 and CRA minutes dated 4/26/99. SB 134 - See Resources committee minutes dated 4/12/99, Finance Report dated 4/23/99 and Rules minutes dated 4/23/99. WITNESS REGISTER Pat Carter Legislative Aide to Senator Drue Pearce Alaska State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Answered questions regarding SB 134 ACTION NARRATIVE TAPE 99-7, SIDE A CHAIRMAN KELLY called the Senate Rules Committee meeting to order at 12:00 p.m. Present were Senators Pearce, Ellis, Miller, and Chairman Kelly. SENATOR PEARCE moved to calendar all versions of SB 125-SCHOOL SAFETY PLAN. There being no objection, the motion carried. CHAIRMAN KELLY announced the next order of business to be SB 134, and that a proposed Senate Rules Committee substitute would be discussed. PAT CARTER, legislative aide to Senator Pearce, sponsor of SB 134, explained the proposed CSSB 134(RLS), version Y, contains two changes. The title was altered to authorize the Alaska Oil and Gas Conservation Commission (AOGCC) to employ additional professional staff. That authorization is contained in Section 8, on page 4, and allows the hire of one petroleum engineer, one reservoir engineer, one petroleum geologist, and one more inspector. On page 2, line 25, the reference to water as part of the total volume was deleted. When working on the regulatory cost charge, the intent was not to substantially alter the proportional changes from the North Slope to Cook Inlet. Cook Inlet produces an enormous amount of water, and that water, under a special permit, is not reinjected, therefore no cost is associated with AOGCC monitoring of the water. Consequently, the words, "and water produced" were deleted. Number 054 SENATOR PEARCE questioned why Section 8 on page 4 makes reference to funds appropriated in FY00, since the intent of the section is to employ the professionals on a permanent basis, not for one year. MR. CARTER explained it was drafted in that manner because no funds were appropriated for that cost in the operating budget which had already cleared the Senate. SENATOR PEARCE questioned whether it will become part of the AOGCC base, which will be comprised of designated program receipts. MR. CARTER said that is correct. SENATOR PEARCE moved to adopt CSSB 134(RLS), version Y, in lieu of the original bill. There being no objection, the motion carried. SENATOR PEARCE moved to calendar all versions of SB 134-WELL REGULATORY COST CHARGE/CONS. TAX. There being no objection, the motion carried. There being no further business to come before the committee, CHAIRMAN KELLY adjourned the meeting at 12:05 p.m.