Status of major oil and gas related bills: May 15

Petroleum News Alaska Staff

House Bill 302

Short title: Alaska gas corporation.

Passed the House April 22. In Senate Resources since April 23

By Rep. Jim Whitaker, R-Fairbanks, mandates a study of a state gasline corporation similar to the state’s permanent fund corporation. The bill is route-neutral.

House Bill 307

Short title: Oil/gas exploration incentive credit

Passed Legislature; awaiting transmittal to governor May 12

By Rep. Hugh Fate, R-Fairbanks. Extends an existing program to June 30, 2007, at request of Andex Resources LLC, which has applied for an exploration license in the Nenana Basin.

House Bill 308

Short title: Oil/gas leases; discovery royalty credit

Never moved out of House oil and gas; opposed by administration.

By Rep. Hugh Fate, R-Fairbanks, would extend discovery royalty credit to discoveries of oil and gas on state land in the Tanana River drainage basin.

House Bill 410

Short title: Alaska natural gas development authority

Never moved out of House oil and gas

By House Special Committee on Oil and Gas; comparable to initiative certified for November ballot.

House Bill 423

Short title: Natural gas transportation by Alaska Railroad

Heard in House oil and gas; in House Finance since March 27.

Governor’s proposal to use tax-exempt Alaska Railroad bonds to finance a gas pipeline.

House Bill 439

Short title: Coastal zone petition

Passed Legislature; transmitted to governor May 9.

Sponsored by the House Special Committee on Oil and Gas, HB 439 removes from state law provisions allowing petitions on whether comments on consistency determinations under the Alaska coastal zone management program were fairly considered.

House Bill 519

Short title: Natural gas pipeline: special provisions

Died in House Rules.

Would have provided a property and sales tax holiday during construction and the first two years of operation of a gas pipeline and revived the stranded gas act. Administration favored stranded gas act, opposed tax holiday during operation.

House Bill 527

Short title: Minto Flats Game Refuge

Passed Legislature; awaiting transmittal to governor May 14

By House Resources; adds entry to game refuge for purposes of exploration and development of oil and gas resources to Minto Flats Game Refuge statute. Prompted by initial refusal of Department of Fish and Game to allow surface entry in most prospective area of proposed Nenana Basin exploration license.

Senate Bill 115

Short title: Board sunsets and activities

Amended in House to extend Regulatory Commission of Alaska; awaiting Senate concurrence May 15

Senate Bill 267

Short title: Natural gas transportation by Alaska Railroad

Senate version of HB 423. In Senate Resources since Feb. 13.

Senate Bill 308

Short title: Coastal zone management policies, regulations, gas line

Passed Legislature; awaiting transmittal to governor May 6

Minor coastal zone management changes; also phasing of consistency determination for gas pipeline.

Senate Bill 319

Short title: Shallow natural gas: leasing and discharges

Passed Legislature; awaiting transmittal to governor May 8

By Sen. John Torgerson, R-Kasilof; expands state’s shallow natural gas leasing program to make it commercial.

Senate Bill 343

Short title: Best available technology: discharge plan

Signed into law March 18.

Response to a state Supreme Court ruling which put the Department of Environmental Conservation’s regulations for best available technology on hold.

Senate Bill 360

Short title: Alaska natural gas project act

In Senate Finance since April 18.

Sponsored by Senate Resources.

Would give gasline owners tax-exempt railroad bonding; property tax and royalty relief and other benefits if, among other things, construction begins by a specified date.

Senate Bill 361

Short title: Permit coordination and coastal zone management

Sponsored by Senate State Affairs Committee.

Heard in State Affairs April 23 and held.

Would review and overhaul Alaska’s permitting system. Sen. Gene Therriault, R-Fairbanks, said he expects to work on the bill between sessions with agencies, regulated industries and watchdog groups.

Senate Bill 371

Short title: Waste permit and coastal zone exemptions

Passed Legislature; awaiting transmittal to governor May 15

Existing bill amended to respond to Supreme Court ruling on Redoubt Shoal consistency determination by allowing agencies to exclude from consistency review and determination process an activity authorized under a general or nationwide permit.