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Providing coverage of Alaska and northern Canada's oil and gas industry
February 2003

Vol. 8, No. 8 Week of February 23, 2003

Proposed bills extend contingency plans, create permit clearinghouse

Governor's bill would extend life of oil discharge and contingency plans from three years to five; Democrats propose unified application form, centralized permitting in Office of the Governor; $3.1 million proposed to fund Arctic Power’s ANWR education efforts

Kristen Nelson

PNA Editor-in-Chief

Gov. Frank Murkowski has introduced a bill to extend the life of oil spill contingency plans from three years to five and Democrats have introduced a bill creating a uniform resource permit application and a permit clearinghouse in the Office of the Governor.

The Department of Environmental Conservation says the change proposed in House Bill 113 and Senate Bill 74, introduced Feb. 19 at the request of the governor, will give them more time in the field inspecting and verifying.

“We are asking that the renewal period be increased to five years for oil discharge prevention and contingency plans, from the present law which requires they be redone every three years,” the governor said in a statement.

Murkowski said the “bill acts on my goal to streamline the permitting process with no loss of environmental protection. In fact, this change will allow the Department of Environmental Conservation to increase its field presence and work directly with operators on the ground to improve performance and make practical enhancements to their spill prevention and response capabilities.”

DEC Commissioner Ernesta Ballard, who developed the legislation at the governor's request, said, “The bill compliments my department's initiatives to shift emphasis away from the administrative review and approval process to the actual inspection and verification of response capability, which fall clearly under the purview of our enforcement authority.” Ballard also said the “bill supports the governor's goal of fostering clarity and certainty through clear and consistently applied industry requirements.”

Oil spill prevention and contingency plans are required of operators of oil terminals, refineries, pipelines, exploration and production facilities, oil tank vessels, non-tank vessels, oil barges and railroad tank cars. Plans are publicly noticed, reviewed and approved by DEC if they meet state requirements.

Larry Dietrick, director of DEC's Division of Spill Prevention and Response, said in the analysis on a “zero” fiscal note for the bill that DEC's administrative review and approval process “can often become bogged down in legal and ajudicatory challenges from third parties.”

“The application, review and approval process for oil spill prevention and contingency plans has become unnecessarily burdensome to applicants and DEC,” Dietrick said. “The ability to prevent and respond to spills will be improved by increasing the capacity to conduct on-site regulated facility and vessel inspections, spill drills and exercises, technical assistance, and interaction with regulated operators to enhance response preparedness.”

Democrats propose own bill to streamline permitting

Democratic legislators introduced identical bills in the House and Senate Feb. 5 to streamline the state's permit application process by creating a “one-stop shopping” clearinghouse in the Office of the Governor for projects that require permits from two or more resource agencies.

House Bill 78 (Senate Bill 60) would establish a unified permit application form for the natural resource agencies and a unified permit application clearinghouse in the Office of the Governor. The Division of Governmental Coordination, which coordinates permit reviews under the Alaska Coastal Management Program, was just moved out of the Office of the Governor as part of the governor's designation of the Department of Natural Resources as the state's lead permitting agency.

“Individuals and industry leaders should be able to apply for projects without having to fill out multiple applications,” House Minority Leader Ethan Berkowitz, D-Anchorage, said in a statement.

HB 78 provides that permit decisions will be issued within 60 days unless the commissioner of an agency finds additional time is needed to meet agency statutory requirements.

“This is a simple, good idea that is going to make Alaskans' lives easier,” said House Minority Whip Beth Kerttula, D-Juneau. “It provides for an effective, efficient and accountable government.”

“Alaskans have said loud and clear that permit streamlining is a priority,” said Rep. David Guttenberg, D-Fairbanks. “We're calling for swift action on this first step to permit streamlining.”

Bill briefs

HB 86, “An Act relating to permits by the state,” introduced Feb. 10 by Rep. Hugh Fate, R-Fairbanks, addresses permit challenges. “Work on a project for which a permit has been issued may be enjoined in a judicial or administrative proceeding only if the challenge is based on new scientific information or newly recognized local traditional knowledge.”

HB 101 would provide $3.1 million from the general fund to the Department of Community and Economic Development for payment as a grant to Arctic Power for education efforts on or after Jan. 1, 2003, “to open the coastal plain of the Arctic National Wildlife Refuge for oil and gas exploration and development.” The $3.1 million includes $100,000 “for the participation of the Native Village of Kaktovik in support of the education efforts undertaken by Arctic Power…” The bill, introduced Feb. 14, was scheduled for a hearing Feb. 20.






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