|
Legislature passes three oil, gas measures Statute requiring AOGCC to be quartered with RCA repealed; qualifications changes for commissioner, stranded gas revisions to governor Kristen Nelson PNA News Editor
The Legislature worked through three pieces of oil industry legislation this session, one of which has already been signed into law by the governor, one of which has just been transmitted and the third awaiting transmittal April 28.
Senate Bill 229, already signed by the governor, repeals a provision enacted last year which required the Alaska Oil and Gas Conservation Commission to share offices with the Regulatory Commission of Alaska. That requirement grew out of a plan the Legislature considered, but did not enact, to combine the two commissions. The requirement for joint housing was tried to provisions for the commissions to share some support staff.
RCA space was found to be inadequate to house both agencies. The state is looking for new quarters for the AOGCC, which has maintenance problems at its offices on Porcupine in Mountain View.
Stranded gas changes House Bill 290, transmitted to the governor April 26, was described by sponsors as the second step in the Legislature’s efforts to encourage and facilitate the development of Alaska’s North Slope natural gas reserves. The Legislature passed the Stranded Gas Act in 1998, authorizing the state to restructure certain taxes and royalty requirements to facilitate the development of otherwise non-economic gas reserves.
At a March 23 hearing HB 290 was described as making changes to existing statutes to remove commercial and regulatory impediments to the successful marketing of liquefied natural gas in Asian markets.
Staff from the House Resources Committee told the House Finance Committee March 23 that the bill will provide “fair, predictable and timely process to identify and dedicate intrastate capacity in a North Slope natural gas pipeline before one is constructed.”
“The creation of jobs and economic opportunity by one or more North Slope natural gas pipeline systems is crucial for our economy,” said Rep. Beverly Masek, Co-Chair of the House Resources Committee. “HB 290 is important to all Alaskans because it moves toward timely development of our natural resources.”
The bill clarifies that only the intrastate portion of the gas pipeline will be regulated by the Regulatory Commission of Alaska; the interstate portion will be regulated by federal authority.
To ensure adequate sizing of the pipeline for instate needs, those requiring 20 million cubic feet of gas a day or more must have contracts for the; those with less than 20 million cubic feet a day of gas must notify the RCA of their intent. HB 290 also specifies that the tariff methodology for a natural gas pipeline will be that used for utilities, not that used for pipelines. The gas pipeline will be allowed to charge different rates for interruptible service than for steady service.
Commissioner qualifications House Bill 414, specifying qualifications for the petroleum engineer commissioner on the Alaska Oil and Gas Conservation Commission, was passed by both House and Senate and awaiting transmittal to the governor.
Rep. Joe Green, sponsor of HB 414, said the bill “clarifies that one of the commissioners must have subsurface experience. Because the activity they regulate is thousands of feet below the ground dealing with oil and gas reservoirs with thousands of pounds of pressure, the commission really needs someone with a petroleum engineering background to ensure safe operations and to protect the state’s interests.”
The three-member commission, a quasi-judicial agency with responsibility for inspecting Alaska’s oil and gas wells and offshore platforms, and for making sure oil and gas production is not wasteful or inefficient, includes a petroleum engineer, a petroleum geologist and a member of the public who is not required to have a technical background.
| 