Dick Eliason on 1978 HCR 112, Alpetco royalty contract, 10 May 1978
to of CAPITOL REPORT has The seventeenth week of the Legislative session was one of the busier to date at least at the House end of the Capital building, and saw the two longest House calendars of the session and one year. Additionally, one of my By REP. DICK ELIASON would, by approving the contract, be dedicating its royalty oil for 27 years, while the Alpetco group would be putting uponlyits declared intention to try to raise House Bill 766, which I introduced in February,, will allow municipalities, inclduing cities and boroughs, to exempt themselves by ordinance 'from Additionally, the on.y partner TM **'Â» "^TM Â»Â«** . which was by lengthy cuacuses and hearings was on HCR 112, the Alpetco contract. The resolution was passed by a margin of one vote, held for reconsideration the ' day, then put off until J, when a final vote will be i. Opponents of the contract hope, in the interim, to pick up to defeat the of f vote Ambers the for for at fun that fact. My with the Alpetco proposal is that it is ail give and no get as far as Alaska is concerned; It would tie up our royalty oil, with .iat a world-scale petrochemical refinery would ever be build. It would preempt the possibility of; any other refineries ever being built in the state, and yet there is not money up front from AJpoIco Alaska petroleum field--and that not in petrochemicals--has pulled out of the group and sold its stock, leaving largely a paper tiger which might be able to raise the finances, which might build a refinery of some undertermined size on the Kenai Peninsula at Nikiski or Seward ir at Valdez, which might be able to negotiate a market for its product, and which, might have a financially viable operation in spite of all the ifs involved and the uncertainties both in the project and in the contract. My judgement in voting against the contract was not a hurried one. In addition to all the other meetings and hearings and studying on the matter, we held a five hour caucus with experts from the company and advisers to the state ivestigating every objection Alaska is to make such a committment, I want it made to a substantial organization, which has more to offer than promises and maybes. Conserve! io n Panel For Oil and Gas Ok'd JUNEAU IAP) - The House passed legislation Tuesday to create an 'Alaska Oil and Gas Conservation Commission. The bill sent to the Senate on a 32-6 vote was aimed at limiting limiting the potential for conflict between between the state's regulatory and ownership interests in oil and gas development. Alaska's oil 'and gas conservation conservation statutes currently are enforced by the Department of Kenai. Chatterton said the bill was designed to eliminate the potential potential of conflict in a case where a state administration might want to speed up oil and gas production to boost revenues even though such an increase might harm long-term recovery. recovery. "It'reflects concerns about ownership and conservation interests interests being placed in the to $250,000. particularly important to our local contractors, quite capable of performing such work, often cannot secure the performance bonds presently required by state law. As a consequence, such work often goes to other, larger contractors from outside the area--often from outside the state--and, of course, at a higher price. Many bring in their own workers as well as equipment and materials. Municipalities would be permitted to grant themselves blanket exemptions by ordiance, and would, in effect, become a guarantor for the local contractor. The bill would have considerable impact on local employment, on the cost of local public works projects, and. on another very important principle in government; it would restore some measure of control over its affairs to the local government. Especially in Sitka, it would help reduce the number of carpetbaggers who come in for short-term, well-paid job, contribute virtually nothing to the community, and leave with the winnings when the job is finished. The bill still must pass the Senate, and I consider, its chances good, but anyone interested who can gain the attention of any of the twenty senators would do well to make his wishes known. During the same week that'the House had its two longest calendar^ of the session, the Senate had no calendar on two days, but that body did manage pass its budget bill. The figures came out fairly close to both the House version and the Governor's request, but cannqt be considered final in any way', shape, or form. There will still supplemental input to both House bills, and finally a The. a my enforcing the"jconservation staY- utes to an inclepe'ncfent, quasi- judicialcommission composed of three member appointed by the governor and confirmed by the Legislature. The proposal was sponsored by Rep. C. V. "Chat" Chatterton, Chatterton, R-Anchorage, and House Speaker Hugh Malone, D- To The Emblem Club will meet Thursday at 8 p.m., downstairs in the old Elks building. Blankenships Have Girl Robert and Bernadette Blankenship are the proud parents of a new baby girl, Laura Mary Blankenship. Laura Mary was born Friday, May 5, 1978. She weighed 7 pounds, 12 ounces. Robert is employed on the Baranof Queen. This is the Blankenship's second child. -- the state to mandate unit agreements in Alaska oil and gas"fields. ! "" ' ' 'Â·Â· 'Â·Â·'Â·Â· Under current law, the state cano.nlyimposeunitagree-mentsife producer interests in the field agree. A unit agreement is a term for a pact between various in- -terest in a field on production levels and other technical operational operational requirements necessary for maximum recovery of oil and gas. Cruise Ship Greeters Needed Eight cruise ship greeters will be employed for the summer tourist season. Applicants--girls and boys must be at least sixteen years of age, of neat appearance, and must have the ability to converse with the visitors and answer their questions regarding Sitka. Interviews for these positions will be in the Rousseau Room of the Centennial Building on Saturday, May 13 at 10 a.m. In the good old days, when the Senate budget finally came down- people began packing, making ferry reservations, and heading for the north,, south, and west. more. We still have several weeks' work before us, and there is no assurance that this session will not set a record for length. has already probably set a record for scarcity of significant action, particulary in the Senate. ^ Election year politics "| begun to show in more places, with candidates, especially those seeking statewide office, voting neither necessarily their consciences not the constituencies, .but what they hope will be most popular on a statewide basis. At least^orie defection from the ranks of the Capitol movers was probably caused by that kind of thinking. It is one of the unfortunate weaknesses of the system--still the best devised for the government by the people. If I can be of any assistance Legislative matters, please do not hesitate to write to me at Pouch V, Juneau, 99811 or call at 465-4958.