House Resources amends settlement bill

When he withdrew his suit against the Point Thomson settlement, Alaska Gov. Bill Walker said he would submit legislation dealing with concerns he had about that settlement.

House Resources heard the bill, House Bill 109, March 6, and sent an amended version on to House Labor and Commerce. The bill will also be heard in House Judiciary.

The governor said in a transmittal letter that the bill would protect the public interest by requiring that prior to approving a settlement related to oil and gas lease matters the attorney general “must determine that the proposed settlement is limited to issues necessary to settle the action, does not settle unrelated matters, and does not alter constitutional, statutory, or regulatory procedures required by law.”

After discussion, the Resources Committee amended the bill by deleting the reference to oil and gas leases, saying that it should be applicable to all resources issues.

The issue of general applicability was raised by Rep. Kurt Olson, R-Soldotna, who asked why it wouldn’t apply to telecommunications, mining and timber.

Rep. Paul Seaton, R-Homer, said he was concerned that settlements reached by the attorney general could override the Legislature’s authority, and said he wanted to recommend to the Judiciary Committee that they broaden the authority in the bill to “civil litigation.”

Rep. Mike Hawker, R-Anchorage, proposing an amendment to broaden the bill, said all resource settlements need to be treated equally - not just oil and gas, but geothermal, mining and timber, and said the Resources Committee should be making the decisions based on resource issues, calling it a Resources Committee jurisdictional issue.

Mary Hunter Gramling, an assistant attorney general, and Susan Pollard, chief assistant attorney general, presented the bill for the Department of Law. They objected to the amendment, saying there might be unintended consequences from broadening the bill. Pollard said the department doesn’t think this would be as manageable in other areas as in oil and gas leases.

- Kristen Nelson