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Alaska Legislature enters final stretch Bills impacting the state’s oil and gas industry are among some of the contestants for votes prior to session ending Kristen Nelson Petroleum News Editor-in-Chief
As the Alaska Legislature enters its last week, some oil and gas related bills moved to the governor for signature while others remained on the House or Senate floors or in committees. (See also cover story on Senate Bill 185.) Coastal management programs House Bill 191 passed the Senate by a vote of 11 to nine May 14; there is a reconsideration vote. The bill, introduced at the request of the governor, streamlines the Alaska Coastal Management Program. It allows municipalities to retain existing land-use authorities to regulate private activity within their jurisdiction and authorizes the Department of Natural Resources to adopt local ordinances as enforceable policies to be applied in consistency reviews of federal projects and outer continental shelf development. The department would consult with local government when interpreting and applying local ordinances as part of a consistency review. The bill would specifically adopt certain existing coastal district policies for federal OCS development as state-enforceable policies.DNR lead resource development projects Senate Bill 142, the companion legislation to HB 191, also introduced at the request of the governor, passed the House May 13; there is a reconsideration vote.
House Bill 11 House Bill 11, by House Rules Chair Norm Rokeberg, R-Anchorage, has been approved by the Senate, reducing the percentage of all mineral lease, royalty and sales revenues deposited into the state’s Permanent Fund to the constitutionally mandated 25 percent. The Legislature increased the amount to 50 percent in 1980. The bill returns to the House for concurrence. Prudhoe Bay contributes 25 percent to the Permanent Fund, but Alpine and North Star contribute 50 percent. Rokeberg said that by changing the contribute rate of those fields to 25 percent and directing the remaining funds to the General Fund, Alpine and North Star contributions to the general fund will replace decline Prudhoe Bay Revenues.
The Senate amended HB 11 to return to the current 50 percent deposit rate by Alpine and North Star, if the dividend loses more than $20.
Gas pipeline transportation tariffs Senate Bill 151, gas pipeline transportation tariffs, passed the House May 13 and goes to the governor for this signature. Sponsored by Tom Wagoner, R-Kenai/Soldotna, SB 151 would clarify that the Regulatory Commission of Alaska has the authority to authorize “firm” and “interruptible” services for other Alaska gas transmission pipelines, allowing the Kenai Kachemak Pipeline to offer both firm and interruptible service.
Gas exploration tax credit House Bill 61, oil and gas tax credit for exploration/development, sponsored by Mike Chenault, R-Nikiski/Ninilchik/Sterling, creates a new income tax credit for exploration and development of natural gas reserves south of the Brooks Range. The bill moved out of the Senate Resources Committee May 8 and was scheduled to be heard in Senate Finances May 15.Railroad bonds for gas transport House Bill 267, Alaska Railroad bonds for natural gas transport, sponsored by Vic Kohring, R-Wasilla, authorizes the Alaska Railroad to provide financing for the acquisition, construction, improvement, maintenance, equipping, or operation of facilities for the transportation of natural gas resources within and outside the state by others. HB 267 also authorizes the Alaska Railroad Corporation to issue bonds to finance those facilities. The bill moved out of House Finance May 14 and awaits its next committee, most likely House Rules.
Limit on oil and gas lease acreage House bill 246, sponsored by House Rules at the request of the governor, increases the upland acreage limit for oil and gas leases from 500,000 acres to 750,000 acres, except for land north of the Umiat Meridian baseline.
The bill moved out of House Resources May 14 and goes next to House Rules.
Attorney fees for public interest litigants HB 145 moved out of House Finance May 12 and was on the House Floor May 15. The bill, requested by the governor, would require that any award of attorneys fees to or against public interest litigants for cases contesting decisions by the Department of Environmental Conservation, the Department of Fish and Game, or the Department of Natural Resources making a coastal consistency determination, adopting regulations, or in which the public had an opportunity to comment to the agency and seek administrative review before the agency, be governed by Alaska Rule of Civil Procedure 82 and amends Rule 82 to require that attorney’s fees be awarded to or against a public interest litigant in those situations in the same manner as attorney’s fees are awarded to or against non-public interest litigants under Rule 82(b). HB 145 also provides, for all litigants, that in the absence of exceptional circumstances, courts may award increased fees only for issues upon which a party prevailed.
Pipeline utilities regulation House Bill 277, pipeline utilities regulation, sponsored by Nancy Dahlstrom, R-Anchorage/Birchwood, moved out of the House Labor and Commerce Committee May 14 and moves to House Finance.
The bill clarifies what jurisdiction the Regulatory Commission of Alaska has over state rates as they pertain to interstate and intrastate tariffs. It also addresses the RCA’s jurisdiction over state right of way leases and the agency’s authority over dismantlement, removal, and restoration.
It also says the RCA will support rate methodologies agreed to in settlement agreements with the state. Alaska Energy Policy Task Force House Concurrent Resolution 21, Alaska Energy Policy Task Force, sponsored by John Harris, R-Valdez, was unanimously adopted by the House May 10. The resolution establishes a nine-member Alaska Energy Policy Task Force to review and analyze the state’s current and long-term energy needs.
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