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Home My WebLink AboutO 047 _ e Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. o 0 if 7 Order File Identifier Organizing (done) o Two-sided 1111111111111 111111 o Rescan Needed 1111111111111111111 RESCAN DIGITAL DATA OVERSIZED (Scannable) o Maps: o Other Items Scannable by a Large Scanner o Color Items: ~reYSCale Items: ~ ~ o Diskettes, No. D Other, NolType: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: D Logs of various kinds: NOTES: Date ?/ J.3 to 7 D Other:: BY: ~ /s/ (Y}P 111111111111111111I /s/ YY\ ,p 74- r Project Proofing BY: ~ Date a../ :;',."" I 0 7 Scanning Preparation BY: = TOTAL PAGES (Count does not include cover sheet) /s/ Date: 11111111111111 11111 = + Production Scanning Stage 1 Page Count from Scanned File: 7 5' (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES S Date:d.-d3 J 07 If NO in stage 1, page(s) discrepancies were found: YES NO Stage 1 BY: /s/ YV1 P NO BY: Maria Date: /s/ 11/11111111I111111I Scanning is complete at this point unless rescanning is required. ReScanned 11111111111111" 11/ BY: Maria Date: /5/ Comments about this file: Quality Checked 11111111I11I1111111 10/6/2005 Orders File Cover Page. doc 1. September 16, 2003 2. 3. 4. ------------------------ October 02, 2003 November 03, 2003 5. November 12,2003 6. November 12, 2003 7. 8. November 13, 2003 November 13, 2003 . . OTHER 47 PROPOSED REGULATIONS 20 AAC 25.001 Fax from AG Office R. Mintz re: Unocal's Application under SB 185 Alternate Compliance and Waivers Public Notice E-mail re: revision 1 to Alternate Compliance and Waivers E-mail submittal of AOGA comments on Proposed Regulations 20 AAC 25.001, Alternate Compliance and Waivers Revised submittal of AOGA comments on Proposed Regulations 20 AAC 25.001, Alternate Compliance and Waivers Sign in sheet for Public Hearing Transcript of Proceedings PROPOSED REGULATIONS #8 . . . 18 19 20 21 22 23 24 25 . . 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 PUBLIC HEARING 3 In Re: 4 Proposed Regulations 5 20 AAC 25.001 Alternate Compliance and Waivers. 6 7 TRANSCRIPT OF PROCEEDINGS 8 p.''''-'..''.'. .'..---'''] Anchorage, þraska // November 115, 20..0..3_____/ 9:04 o'clo~-m:" 9 10 11 COMMISSIONERS: 12 13 SARAH PALIN, Chairperson DAN SEAMOUNT 14 15 ALSO PRESENT: 16 ROBERT MINTZ Assistant Attorney General 17 * * * * METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 I~RlG~NA~ 1 . . · 1 TABLE OF CONTENTS 2 3 OPENING REMARKS BY CHAIRPERSON PALIN Page 3 4 TESTIMONY BY MARK WORCESTER Page 4 5 DISCUSSION Pages 6-7 6 CLOSING REMARKS BY CHAIRPERSON PALIN Page 8 7 8 * * * * 9 10 11 12 13 · 14 15 16 17 18 19 20 21 22 23 24 25 · METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 . 13 . 14 15 16 17 18 19 20 21 22 23 24 25 . . . 1 PRO C E E DIN G S 2 (On record 9:04 a.m.) 3 CHAIR PALIN: We're on the record. I'd like 4 to call this hearing to order. Today is Thursday, November 5 13th. The time is approximately 9:04. We're at the AOGCC 6 offices at 333 West Seventh in Anchorage. The subject of 7 today's hearing is the Commission's proposal to adopt 8 Regulation 20 AAC 25.001. 9 For the record I'd like to introduce Commissioner Dan 10 Seamount on my right, and Assistant Attorney General Rob Mintz 11 on my left, and I am Sarah Palin, Chairman of the Commission. 12 We also have with us today Metro Court reporter Laura Ferro. And if anybody wishes to have a copy of the hearing transcribed and copied to you, you may make arrangements directly with Metro. Notice of the public hearing today was published in the Anchorage Daily News on October 3, 2003. And the Commission has received written comments from AOGA regarding this regulation change, and we're here today to accept any other public comments either in writing or orally. And I see that we do have two guests in the hearing room today. And the sign-up sheet indicates that Mark Worcester from Conoco Phillips would like to testify. And Theresa Rockhill, you won't be testifying? MS. ROCKHILL: No. METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 3 . . . . . 1 Okay. All right. We would CHAIR PALIN: 2 accept that testimony now. Mark, if you're ready, if you'll 3 come forward. Thank you. 4 MR. WORCESTER: Yes. My name is Mark 5 Worcester. I'm an attorney with Conoco Phillips but I'm 6 speaking today on behalf of AOGA. I will not read the 7 comments that we have submitted. I figure you folks are quite 8 capable of doing that. I would like to point out an error in 9 the citation to the new federal regulation. I apologize for 10 that. We'll submit a corrected copy. But the current federal 11 regulation on this topic is at 30 CFR 250.141 and 142, instead 12 of .241 and .242 as indicated in the letter. I have a copy 13 here today and we can make some for you if you wish to have a 14 copy. I did not append the actual copies from the Code of 15 Federal Regulations. 16 I just thought instead of reading it I would reiterate 17 a few of the points that we made. And if there are any 18 questions about them from the Commission, I'll attempt to 19 respond to them. 20 Basically, we see this regulation proposal as a 21 solution looking for a problem. We just -- we really don't 22 see a problem with the current regulations that - - the current system that's been used by the Commission has been quite adequate to provide the necessary flexibility from the - - 23 24 25 either the pool rules or statewide rules on a case-by-case METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 4 . 2 3 4 5 6 7 8 9 10 11 12 13 . 14 15 16 17 18 19 20 21 22 23 24 25 . . . 1 basis where the Commission has felt it appropriate under its general statutory language and constraints. And so in the absence of a problem, we're a little wary of attempting to insert what is basically a former federal regulation, and that language here which might restrict rather than ease the Commission's ability to do the right thing in a case-by-case basis. And that's particularly true since the federal system does not have a pool rule system. We have statewide rules in Alaska, but almost every pool has pool rules that are essentially exceptions from the statewide rule. And there's no need in the statute now that there be an equivalence or something like that be proven before a pool rule be done. But this - - unlike in the federal system there's a particularized scrutiny of each pool and then pool-specific and pool- appropriate rules are made. And we think that's a very good system here where we tend to have large pools, and this rather particularized scrutiny has worked well as far as for both the industry and the Commission. The other thing that I guess I wanted to note was that the federal practice has actually changed. The regulation that served as the basis for this proposal is no longer the current federal proposal regulation. And we think there's more flexibility under the current federal regulation than there was under the one that was used as the basis for this proposal. METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 5 . . . . . 1 Finally, if some regulation is adopted on this 2 subject, we believe it should be in the general provisions, 3 and we'd suggest right after the section on pool rules would 4 be the appropriate place rather than in the first section of 5 the regulations which deals specifically and solely with 6 drilling practices. With that I'll be quiet unless you have a 7 particular question you'd like to ask. 8 CHAIR PALIN: Any questions for Mark? 9 COMMISSIONER SEAMOUNT: Looking at your 10 proposed wording and the Commission's proposed wording, is the 11 main difference about the standards for waivers determination, 12 yours would be consistency with the statute, and the 13 Commission's would be equivalence to the existing regulations? 14 MR. WORCESTER: That is probably the 15 substantive difference. 16 COMMISSIONER SEAMOUNT: Okay. 17 MR. WORCESTER: Yes. There would be more 18 discretion in the language we provided to do whatever is 19 appropriate under the general statutory powers of the 20 Commission, and not have to match -- prove equivalence with 21 the existing regulation. 22 COMMISSIONER SEAMOUNT: Okay. Mr. Worcester, 23 under -- on page two, what is it, subsection 1, the first 24 sentence says we understand the Commission is inclined to 25 delete subsection B. Could I ask you where you got that METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 6 · · · . . 1 information? 2 MR. WORCESTER: That was hearsay information 3 that I got from Chris Phillips after a conversation with Randy 4 Ruedrich last week. So..... 5 COMMISSIONER SEAMOUNT: That/s what I was 6 afraid of. 7 CHAIR PALIN: Okay. 8 MR. WORCESTER: Then I think we may have 9 received a -- I saw something that just had that subsection 10 without the others attached to it but I don/t -- that/s why we 11 did not state it as a fact. I did not know if it had actually 12 been renoticed or not. 13 CHAIR PALIN: OkaYI thank you. Good. 14 MR. WORCESTER: Thank you. 15 CHAIR PALIN: Okay. Thank youl Markl for your 16 testimony. And hearing and seeing no additional comments in 17 consideration of AOGA/s written comments and your oral 18 testimony therel Markl I would recommend that we recess for 19 approximately 10 minutes so that we can discuss this unless 20 there's objection from my fellow Commissioner. 21 COMMISSIONER SEAMOUNT: No objection. 22 CHAIR PALIN: Okay. We will recess then for 23 10 minutes and weIll be back then. Off record. 24 (Off record 9: 11 a. m. ) 25 (On record 9:26 a.m.) METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 7 . . . 25 . . 1 CHAIR PALIN: We/re back on record then. Are 2 there any other questions or comments I Commissioner? Okay. 3 COMMISSIONER SEAMOUNT: I have none. 4 CHAIR PALIN: I have none either. Then after 5 reading and hearing testimony from AOGA and AOGA repl we will 6 consider it as testimonYI and we thank you very much for it. 7 It/s our intention to consider this and to take this up in our 8 future public meeting which has not been scheduled yetI but 9 we/re not ready then to propose a motion on this and to adopt 10 it. So we thank you very much for your testimony and for 11 taking the time to share with us this information. 12 And with that thenl we can adjourn this meetingl and 13 weIll probably see you at our next public meeting when this 14 is -- okay. Thank you. 15 (Off record 9:27 a.m.) 16 * * * END OF PROCEEDING * * * 17 18 19 20 21 22 23 24 METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 8 . . . 22 23 24 25 . . 1 C E R T I FIe ATE 2 SUPERIOR COURT ) )ss. ) 3 STATE OF ALASKA 4 5 I, Laura C. Ferro, Notary Public in and for the State of Alaska, do hereby certify: 6 THAT the annexed and foregoing pages numbered 3 7 through 8 contain a full, true and correct transcript of the Public Hearing before the Alaska Oil and Gas Conservation 8 Commission, taken by and transcribed by myself; 9 THAT the Transcript has been prepared at the request of the Alaska Oil and Gas Conservation Commission, 333 West 10 Seventh Avenue, Anchorage, Alaska; 11 DATED at Anchorage, Alaska this 13th day of November, 2003. 12 13 ~\\\\\UlIII/JJUI!ü.I ~ .... C. :'~~ ~ ,~r.,........ ç~ Ø!.._ ~:oJ .. ...~~ §!! ~ .... ..; ~ ~ ~ " .. ... e;. ~ .. . ~ .!is {NOTARY\ ~ ~!II. \ PUBLIC / .~ ~T e. ._..-. § ~ cP .. .' ~ §§ ~~;:;:.......,~.~~ ~ ~ t: OF to.\. ~ Wnllllll" \\\\\\\\~ SIGNED AND CERTIFIED TO BY: 14 15 ~c.~ 16 Laura C. Ferro Notary in and for Alaska My Commission Expires:06/03/05 17 18 19 20 21 METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 #7 . . STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION PROPOSED REGULATIONS 20 AAC 25.001 AL TERNA TE COMPLIANCE AND WAIVERS November 13,2003 at 9:00 am NAME - AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRI~ 7I1aé5~' ot?£i/I /ô 1\/( Ú\/'t I!\ ) Î\i, '1 ¡&~ ~ v /{ cCA- / ( P.4 ( ¡Jèì Ll~~ / \Hearing_ Sign-In #6 . . ~f?¡I¡1ecl A0GI Alaska Oil and Gas Association 121 W. Fireweed Lane, Suite 207 Anchorage, Alaska 99503-2035 Phone: (907)272-1481 Fax: (907)279-8114 November 12, 2003 Commissioner Sarah Palin Chair Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Commissioner Dan Seamount Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 AOGA Comments on Proposed ReQulations 20 MC 25.001. Alternate Compliance and Waivers Dear Commissioners: The Alaska Oil & Gas Association (AOGA) appreciates the opportunity to provide comments to the Alaska Oil and Gas Conservation Commission ("commission") on proposed regulation changes in Title 20, Chapter 25, of the Alaska Administrative Code, dealing with variances and waivers. As you are aware, AOGA is a private, non-profit trade association whose 18 member companies account for the majority of oil and gas exploration, development, production, transportation, refining and marketing activities in Alaska. The public notice indicates that the AOGCC is proposing to amend the regulations to add a new 20 MC 25.001, and make conforming changes to various other sections. AOGA believes that the proposed change is unnecessary, may have unintended adverse consequences, is not reflective of current federal practice, and is more appropriately located in another article of the regulations. We offer some alternative language that avoids these problems, in case the commission wishes to proceed with adoption of regulations on this topic. Discussion AOGA does not understand the need for a change in the regulations. At present, the regulations provide an appropriate and workable balance between specific rules, performance standards, and mechanisms for approval of alternative methods of compliance, variances and waivers. We are unaware of any specific situation where the commission was precluded under the current regulations from accommodating a reasonable request to use an alternative method of compliance or to obtain a reasonable variance or waiver of a regulatory requirement. We are concerned that the regulatory change may have unintended consequences. In particular, this regulation could be interpreted to restrict the commission's discretion to issue individualized orders or adopt pool-wide or area-wide rules that are consistent with and necessary to effectuate the purposes of AS 31.05. The standards under the proposed regulations measure alternative methods of compliance against existing regulations, not against the more general standards set November 12, 2003 Page 2 . . forth in the statute. Nor is the proposed rule consistent with the discretion provided in most pool rules and area-wide orders to administratively waive or amend a rule as long as the change is based on sound engineering principles and does not promote waste or jeopardize correlative rights.1 We also urge the commission to use care before incorporating federal precedent. First, MMS does not use pool rules to create fit-for-purpose variations from its rules of general application, with the consequence that the federal rules on alternative methods of compliance, variances and waivers require adjustment to accommodate the Alaskan practice of adopting pool rules and area injection orders that vary the requirements found in the "statewide rule" on a case-by-case basis. Second, the original proposal for the proposed new regulation was based on the assumption that it reflected the "approach used successfully by MMS." However, the cited regulation, 30 CFR 250.103, is not the current regulation. 30 CFR 250.103 was repealed and replaced by 30 CFR 250.141 - .142 at the end of 1999. Most notably, the "necessity" standard for a departure under the former 30 CFR 250.103(a) is removed from the replacement regulation, 30 CFR 250.142.2 If the commission elects to adopt a new regulation on this subject, we suggest language more like the following: 20 AAC 25.521. AL TERNA TE COMPLIANCE AND WAIVERS. (a) The commission will consider the use of alternative techniques, procedures, equipment, or activities other than those prescribed in the regulations of this chapter. Generally, such other techniques, procedures, equipment, or activities should afford a degree of protection, safety, or performance equal to or better than that intended to be achieved by the regulations of this chapter. A request for the use of alternative techniques, procedures, equipment, or activities must be provided in writing and accompanied by a justification of the proposal. Written approval from the commission is required prior to use. 1 We understand that the commission is inclined to delete subsection (b) from the proposed new Section 20 AAC 25.001. While we support the concept, we are concerned that there may be some ambiguity about the distinction between an "alternative technique, procedure, equipment or activity" and a "waiver" or "variance" from a requirement of the regulations. The commission should be careful to avoid adoption of a regulation that would allow a court to disallow a judgment of the commission to allow a variance or waiver that is consistent with its duties under AS 31.05 based upon the court's determination that the variance constitutes an "alternative technique, procedure, equipment or activity" that could be allowed only upon finding of "equivalence" to the statewide rule. 2 The former 30 CFR 250.103 (b) read. The appropriate MMS official may prescribe or approve departures from the operating requirements of the regulations of this part when such departures are necessary for the proper control of a well, the facilitation of the proper development of a lease, the conservation of natural resources, or the protection of life (including fish and other aquatic life), property or the environment. The current counterpart, 30 CFR 250.142 reads: How do I receive approval for departures? We may approve departures to the operating requirements. You may apply for a departure by writing to the District or Regional Supervisor. November 12, 2003 Page 3 . . (b) The commIssIon may approve variances or waivers from the requirements of the regulations of this chapter when such waivers are consistent with AS 31.05 and appropriate for the proper control of a well, the facilitation of the proper development of a lease, the conservation of natural resources, or the protection of correlative rights. (c) Approval of alternative techniques, procedures, equipment, activities, variances or waivers may be made on a pool-wide or area-wide basis in pool rules adopted under 25 AAC 25.520 and area injection orders under 20 AAC 25.460. (Eft. ~ ~ _, Register ) Authority: AS 31.05.030 Please note that we propose that any regulation on this subject be located in Article 6 (General Provisions") of the regulations, not Article 1 (Drilling), as its scope is not limited to drilling regulations. We suggest that it would be appropriately numbered as 20 MC 25.521 immediately after the section on pool rules. We will be attending the November 13, 2003 AOGCC hearing regarding the proposed regulations. Should you or any of your colleagues have any questions regarding our recommendations, we will be happy to address them at that time. Thank you again for this opportunity to express our concerns and to provide our recommendations. Sincerely, Chris Phillips Chairman, AOGCC Task Group #5 AOGA Written Comments on AOGCC Proposed R.ions 20 MC 25.001 . Subject: AOGA Written Comments on AOGCC Proposed Regulations 20 AAC 25.001 Date: Wed, 12 Nov 2003 10:45:10 -0900 From: Theresa Rockhill <rockhill@aoga.org> To: Jody Colombie <jody _ colombie@admin.state.ak.us> CC: Vaughn Vennerberg <vaughn _ vennerberg@xtoenergy.com>, Barbara Fullmer <barbara.f.fullmer@conocophillips.com>, Chris Phillips <phillicj@bp.com>, Doug Marshall <dmarshall@sarcomgs.com>, 'Faye Sullivan' <sullifw@unoca1.com>, Gary Laughlin <galaughlin@marathonoi1.com>, "Gunkel, Fritz" <GunkeIFP@BP.com>, Harry Engel <engelhr@bp.com>, Jerome Eggemeyer <J erome.C.Eggemeyer@conocophillips.com>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, Ken Boyd <kenbo@gci.net>, Kevin Tabler <tablerk@unoca1.com>, "Lambe, Steven S." <SSLambe@MarathonOi1.com>, Lindsey Dingmore <Lindsey _ Dingmore@xtoenergy.com>, Mark Hanley <mark _ hanley@anadarko.com>, Mark Worcester <Mark.P.Worcester@conocophillips.com>, "Michael. R. Johnson (E-mail)..<michae1.r.johnson@exxonmobil.com>. Mike Barker <mike.barker@exxonmobi1.com>, Nina Hutton <nina_hutton@xtoenergy.com>, Phil Krueger <PKrueger@unocal.com>, Rob Dragnich <rob.g.dragnich@exxonmobil.com>, Tom Reese <reese@sarcomgs.com>, Tommy Thompson <tommy_thompson@anadarko.com>, Tamara Sheffield <sheffield@aoga.org>, Judy Brady <brady@aoga.org>, Marilyn Crockett <crockett@aoga.org> Jody, Attached is a copy of AOGA's written comments to AOGCC's proposed regulations 20 MC 25.001, Alternate Compliance and Waivers. Please provide a copy of these comments to the Commissioners prior to tomorrow's public hearing. An AOGA representative will be in attendance at the public hearing to present these comments. Thanks. Theresa Theresa Rockhill ALASKA OIL AND GAS ASSOCIATION 121 W. Fireweed Lane, Suite 207 Anchorage, Alaska 99503 Phone: 907-272-7424 Fax: 907-279-8114 1 of 2 11/12/20031:14 PM AOGA Written Comments on AOGCC Proposed R.ions 20 MC 25.001 . email: rockhill@aoga.org Name: AOGA writt comments t re variances ~AOGA written comments to AOGCC re variances and waivers 11.12.03.doc waivers 11. Type: WINWORD ( application! Encoding: base64 2of2 11/12/20031:14 PM . . A0GI Alaska Oil and Gas Association 121 W. Fireweed Lane, Suite 207 Anchorage, Alaska 99503-2035 Phone: (907)272-1481 Fax: (907)279-8114 November 12, 2003 Commissioner Sarah Palin Chair Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Commissioner Dan Seamount Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 AOGA Comments on Proposed ReQulations 20 MC 25.001. Alternate Compliance and Waivers Dear Commissioners: The Alaska Oil & Gas Association (AOGA) appreciates the opportunity to provide comments to the Alaska Oil and Gas Conservation Commission ("commission") on proposed regulation changes in Title 20, Chapter 25, of the Alaska Administrative Code, dealing with variances and waivers. As you are aware, AOGA is a private, non-profit trade association whose 18 member companies account for the majority of oil and gas exploration, development, production, transportation, refining and marketing activities in Alaska. The public notice indicates that the AOGCC is proposing to amend the regulations to add a new 20 MC 25.001, and make conforming changes to various other sections. AOGA believes that the proposed change is unnecessary, may have unintended adverse consequences, is not reflective of current federal practice, and is more appropriately located in another article of the regulations. We offer some alternative language that avoids these problems, in case the commission wishes to proceed with adoption of regulations on this topic. Discussion AOGA does not understand the need for a change in the regulations. At present, the regulations provide an appropriate and workable balance between specific rules, performance standards, and mechanisms for approval of alternative methods of compliance, variances and waivers. We are unaware of any specific situation where the commission was precluded under the current regulations from accommodating a reasonable request to use an alternative method of compliance or to obtain a reasonable variance or waiver of a regulatory requirement. We are concerned that the regulatory change may have unintended consequences. In particular, this regulation could be interpreted to restrict the commission's discretion to issue individualized orders or adopt pool-wide or area-wide rules that are consistent with and necessary to effectuate the purposes of AS 31.05. The standards under the proposed regulations measure alternative methods of compliance against existing regulations, not against the more general standards set November 12, 2003 Page 2 . . forth in the statute. Nor is the proposed rule consistent with the discretion provided in most pool rules and area-wide orders to administratively waive or amend a rule as long as the change is based on sound engineering principles and does not promote waste or jeopardize correlative rights.1 We also urge the commission to use care before incorporating federal precedent. First, MMS does not use pool rules to create fit-for-purpose variations from its rules of general application, with the consequence that the federal rules on alternative methods of compliance, variances and waivers require adjustment to accommodate the Alaskan practice of adopting pool rules and area injection orders that vary the requirements found in the "statewide rule" on a case-by-case basis. Second, the original proposal for the proposed new regulation was based on the assumption that it reflected the "approach used successfully by MMS." However, the cited regulation, 30 CFR 250.103, is not the current regulation. 30 CFR 250.103 was repealed and replaced by 30 CFR 250.241 - .242 at the end of 1999. Most notably, the "necessity" standard for a departure under the former 30 CFR 250.103(a) is removed from the replacement regulation, 30 CFR 250.242.2 If the commission elects to adopt a new regulation on this subject, we suggest language more like the following: 20 AAC 25.521. AL TERNA TE COMPLIANCE AND WAIVERS. (a) The commission will consider the use of alternative techniques, procedures, equipment, or activities other than those prescribed in the regulations of this chapter. Generally, such other techniques, procedures, equipment, or activities should afford a degree of protection, safety, or petiormance equal to or better than that intended to be achieved by the regulations of this chapter. A request for the use of alternative techniques, procedures, equipment, or activities must be provided in writing and accompanied by a justification of the proposal. Written approval from the commission is required prior to use. 1 We understand that the commission is inclined to delete subsection (b) from the proposed new Section 20 AAC 25.001. While we support the concept, we are concerned that there may be some ambiguity about the distinction between an "alternative technique, procedure, equipment or activity" and a "waiver" or "variance" from a requirement of the regulations. The commission should be careful to avoid adoption of a regulation that would allow a court to disallow a judgment of the commission to allow a variance or waiver that is consistent with its duties under AS 31.05 based upon the court's determination that the variance constitutes an "alternative technique, procedure, equipment or activity" that could be allowed only upon finding of "equivalence" to the statewide rule. 2 The former 30 CFR 250.103 (b) read. The appropriate MMS official may prescribe or approve departures from the operating requirements of the regulations of this part when such departures are necessary for the proper control of a well, the facilitation of the proper development of a lease, the conservation of natural resources, or the protection of life (including fish and other aquatic life), property or the environment. The current counterpart, 30 CFR 250.242 reads: How do I receive approval for departures? We may approve departures to the operating requirements. You may apply for a departure by writing to the District or Regional Supervisor. November 12, 2003 Page 3 . . (b) The commission may approve variances or waivers from the requirements of the regulations of this chapter when such waivers are consistent with AS 31.05 and appropriate for the proper control of a well, the facilitation of the proper development of a lease, the conservation of natural resources, or the protection of correlative rights. (c) Approval of alternative techniques, procedures, equipment, activities, variances or waivers may be made on a pool-wide or area-wide basis in pool rules adopted under 25 AAC 25.520 and area injection orders under 20 AAC 25.460. (Eft. _/-.1_, Register ) Authority: AS 31.05.030 Please note that we propose that any regulation on this subject be located in Article 6 (General Provisions") of the regulations, not Article 1 (Drilling), as its scope is not limited to drilling regulations. We suggest that it would be appropriately numbered as 20 AAC 25.521, immediately after the section on pool rules. We will be attending the November 13, 2003 AOGCC hearing regarding the proposed regulations. Should you or any of your colleagues have any questions regarding our recommendations, we will be happy to address them at that time. Thank you again for this opportunity to express our concerns and to provide our recommendations. Sincerely, Chris Phillips Chairman, AOGCC Task Group #4 A Item ate Compliance and Waivers . . Subject: Alternate Compliance and Waivers Date: Mon, 03 Nov 2003 10:22:08 -0900 From: jody _ colombie@admin.state.ak.us Organization: Alaska Oil and Gas Conservation Commission To: rockhill <rockhill@aoga.org> Teresa, please find attached revision 1 to be "Waivers and Variance" Proposed Regulation. Jody ~1 20AAC25 Name: 1 20 AAC 25 .doc - - .doc Type: WINWORD File (applicationlmsword) Encoding: base64 ] of] ] ] /3/2003 ] 0:22 AM . MEMORANDUM To: Sarah Palin, Chair Alaska Oil and Gas Conservation Commission ~~ From: Deborah E. Behr Assistant Attorney General and Regulations Attorney Legislation and Regulations Section ~.. . State of Alaska Department of Law Date: October 13, 2003 File No.: 993-04-0085 Tel. No.: 465-3600 Re: Regulations File Opening Re: AOGCC: Variances; Waivers; Certification of Production Volumes (20 AAC 25) We have received the commission's memorandum of October 3, 2003 regarding this project, along with a copy of the proposed regulations. The project has been assigned to Assistant Attorney General Rob Mintz, phone number 269-5100. Our department's file number for this project is 993-04-0085. This file number should be used on any further correspondence pertaining to this project. DEB:pvp cc: Kevin J ardell, Regulations Contact Dept. of Administration Jody Colombie Alaska Oil & Gas Conservation Commission Dept. of Administration Robert Pearson, AAC Coordinator Lt. Governor's Office Wilson Condon, Supervising Attorney Oil, Gas & Mining Section Rob Mintz Assistant Attorney General Anchorage . . MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: Deborah E. Behr Assistant Attorney General And Regulations Attorney Legislation and Regulations Section DATE: October 3, 2003 FROM: SUBJECT: File-opening request for new regulations project on variances and waivers and on certification of production volumes under sec. 1, ch. 59, SLA 2003 We are requesting that you open a new file for a regulations project regarding changes in Title 20, Chapter 25, of the Alaska Administrative Code, dealing with variances and waivers and with certification of production volumes under sec. 1, ch. 59, SLA 2003. Enclosed is a copy of the public notice, Additional Regulations Notice Information, and a draft of the regulation. Please assign assistant attorney general Robert Mintz to this project. Our contact person for the project is Jody Colombie at 793-1221. SP/jjc . . STATE OF ALASKA NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission ("AOGCC") proposes to adopt regulation changes in Title 20, Chapter 25, of the Alaska Administrative Code, dealing with variances and waivers and with Commission certification of certain production volumes, including the following: a general variance and waiver provision would replace specific provisions in numerous sections of the AOGCC's current regulations; and provisions would be established to implement the AOGCC's authority under sec. 1, ch. 59, SLA 2003 to certify certain production volumes. You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by writing to AOGCC, 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501. The comments must be received no later than 4:30 p.m. on November 18, 2003. Additionally, oral or written comments may be submitted at a hearing to be held on November 13, 2003, at 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501. The hearing will begin at 9:00 a.m. and might be extended from day to day if necessary to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If you are a person with a disability who may need a special accommodation, auxiliary aid or service, or alternative communication fonnat in order to participate in the process on the proposed regulation, please contact Jody Colombie at 793-1221 by 4:00 p.m., November 7,2003 to ensure that any necessary accommodations can be provided. Copies of the proposed regulation changes may be obtained from the AOGCC office, 333 W. 7th Avenue, Anchorage, Alaska 99501, or by telephoning the AOGCC at 907-793-1221, or on the AOGCC website at: http://www.aogcc.alaska.gov. After the public comment period ends, the AOGCC will either adopt this or another proposal dealing with the same subject, without further notice, or decide to take no action on it. The language of the fmal regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTEREST COULD BE AFFECTED. Written comments received are public records and are subject to public inspection. Statutory Authority: AS 31.05.030; AS 31.05.040.. Statutes Being Implemented, Interpreted, or 'Made Specific: AS 31.05.030. Fiscal Information: The proposed regulation changes are not expected to require an increased ., ~ ::':P:::O~~3'2DD3 sæ4 ~ Chair, Alaska Oil and Gas Conservation Commission Published: 10/3/03 AO: 02414009 . . ADDITIONAL REGULA TJONS NOTICE INFORMATION (AS 44.62.190(d» 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: variances and waivers, and certification of production volumes under sec. 1, ch. 59, SLA 2003 3. Citation of regulations: 20 AAC 25. 4. Reason for the proposed action: to provide for unifonn treatment of variances and waivers in regulations, and to implement new legislation 5. Program category and BRU affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations Jody Colombie, Alaska Oil and Gas Conservation Commission, 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501, (907) 793-1221. 8. The origin of the proposed action: state agency. :~. ::;~ed~:Ober 3~:d~ rY(ML--- Jod olom 1 Spe·· I Sta ' Ässistant Alaska Oil and Gas Conservation Commission (907) 793-1221 #3 STATE OF ALASKA ADVERTISING ORDER . NOTICE TO PUBLlSHEcA I CE MUST BE IN TRIPLICATE SHOWING ADVERTISING O~_O., CERTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. AO-02414009 F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M AGENCY CONTACT DATE OF A.O. Jod Colombie PHONE October 2 2003 PCN b Anchorage Daily News POBox 149001 Anchorage, AK 99514 October 3, 2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal D Display Advertisement to be published was e-mailed D Classified DOther (Specify) SEE ATTACHED DATE 2 ARD 3 4 02910 FIN AMOUNT SY cc PGM LC ACCT FY NMR DIST LID 04 02140100 73540 2 3 4 REQUISITIONED BY: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM .e ., . nchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 964431 10/03/2003 02414009 STOF0330 $236.88 $236.88 $0.00 $0.00 $0.00 $0.00 $0.00 $236.88 STATE OF ALASKA THIRD JUDICIAL DISTRICT Teresita Peralta, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individua[s. r ¡ y&~;Jf~~ Signed Subscribed and sworn to me before this date: /r1Q? Notary Public in and for the State of Alaska. Third Divis;on. Anchomge, Alaska ~ ~SIONEXPJR ,~~'t25 \\\{(((({fff/ \\\\ ..\.\E S. /)¡{"'''''''' ~ Ofb..· :.:.:.... ~ ~ t~;~O:_þ:'Rj.:.~% '- . . - - . ^ ,r . .., - . "'UBL'v . ::: ":::t'... . .~.... ':::.%.~ ---/:. .... __.~ II ~ ~~'~OF" ...~.'" ~ ............f, ," /,/ ~~,\\ /.I//jlJ)J}'" STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLlSHEiA CE MUST BE IN TRIPLICATE SHOWING ADVERTISING O~_O.. CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. AO-02414009 F AGENCY CONTACT DATE OF A.O. AOGCC 333 West 7th Avenue, Suite 100 o Anchorage, AK 99501 M 907-793-1221 R PHONE PCN T o Anchorage Daily News POBox 149001 Anchorage, AK 99514 October 3, 2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for _ consecutive days, the last publication appearing on the _ day of , 2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 SOldotna, AK 99669-2139 . Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 323 Knipp Forest Street Houston, TX 77079-1175 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Penny Vadla Box 467 Ninilchik, AK 99639 Richard Wagner PO Box 60868 Fairbanks, AK 99706 . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 James Gibbs PO Box 1597 Soldotna, AK 99669 Cliff Burglin PO Box 131 Fairbanks, AK 99707 . Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 . North Slope Borough PO Box 69 Barrow, AK 99723 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Pub]ic Notice . . Subject: Public Notice Date: Fri, 03 Oct 2003 12:01 :46 -0800 From: Jody Colombie <jody_colombie@admin.state.akus> Organization: Alaska Oil and Gas Conservation Commission To: Con Bunde <senator_con_bunde@legis.state.ak.us>, John Cowdery <senator john _ cowdery@legis.state.ak.us>, Bettye J Davis <senator _ bettye _ davis@legis.state.ak.us>, Johnny Ellis JR <senator johnny _ ellis@legis.state.ak.us>, Kim S Elton <senator _ kim _ elton@legis.state.ak.us>, Hollis French <senator _hollis _ :fTench@legis.state.ak.us>, Lyda N Green <senator Jyda _green@legis.state.ak.us>, Gretchen G Guess <senator _gretchen _guess@legis.state.ak.us>, Lyman F Hoffinan <senator_lyman_hoffinan@legis.state.ak.us>, Georgianna Lincoln <senator _georgianna _lincoln@legis.state.ak:.us>, Scott Ogan <senator _ scott_ ogan@legis.state.ak.us>, senator ben stevens <senator ben stevens@legis.state.ak.us>, - - - - senator _gary_stevens <senator _gary _ stevens@legis.state.ak.us>, senator_robin _taylor <senator Jobin _ taylor@legis.state.ak.us>, senator_gene _ therriault <senator_gene _ therriault@legis.state.ak.us>, senator thomas waggoner <senator thomas waggoner@legis.state.ak.us>, - - -- senator _gary_wilken <senator _gary _ wilken@legis.state.ak.us>, representative_mike _chenault <representative_mike _ chenault@legis.state.ak.us>, representative_sharon _cissna <representative_sharon _ cissna@legis.state.ak.us>, representative john_coghill <representative john _ coghill@legis.state.akus>, representative_harry _crawford <representative yarry _ crawford@legis.state.ak.us>, representative _ eric_croft <representative _ eric _ croft@legis.state.ak.us>, representative _ nancy _ dahlstrom <representative _ nancy _ dahlstrom@legis.state.ak.us>, representative_fate _hugh <representative_fate _hugh@legis.state.ak.us>, representative Jichard _foster <representative Jichard _ foster@legis.state.ak.us>, representative _les _gara <representative _les _gara@legis.state.ak.us>, representative _ carl_gatto <representative _ carl_gatto@legis.state.akus>, representative _ max _gruenberg <representative flax _gruenberg@legis.state.ak.us>, representative _ david _guttenberg <representative_ david _guttenberg@legis.state.ak.us>, representative johnyarris <representative john _ harris@legis.state.ak.us>, representative_mike _hawker <representative_mike _ hawker@legis.state.ak.us>, representative _ cheryll_ heinze <representative _ cheryll_heinze@legis.state.ak.us>, representative jim_holm <representative jim _ holm@legis.state.ak.us>, representative _reggie joule <representative Jeggie joule@legis.state.ak.us>, representative _ mary _ kapsner <representative _ mary _ kapsner@legis.state.ak.us>, representative_beth _ kerttula <representative_beth _ kerttula@legis.state.ak.us>, representative _ vic _ kohring <representative _ vic _ kohring@legis.state.ak.us>, representative _ albert _ kookesh <representative _albert _ kookesh@legis.state.ak.us>, representative yete _kott <representative yete _ kott@legis.state.ak.us>, representative_bob _lynn <representative_bob _lynn@legis.state.ak.us>, representative _ beverly _ masek <representative _ beverly _ masek@legis.state.ak.us>, representative _lesil_mcguire <representative _lesil_ mcguire@legis.state.ak.us>, representative _ kevin _ meyer <representative _ kevin _ meyer@legis.state.ak.us>, representative _ carl_morgan <representative _ carl_ morgan@legis.state.ak.us>, representative _ carl_ moses <representative _ carl_ moses@legis.state.ak.us>, representative _ dan _ ogg <representative _ dan _ ogg@legis.state.ak.us>, lof4 10/3/2003 4: 1 0 PM Public Notice . . representative _ nonnan Jokeberg <representative _ nonnan Jokeberg@legis.state.ak.us>, representative Jalph_ samuels <representative Jalph _samuels@legis.state.ak.us>, representative yaul_ seaton <representative yaul_seaton@legis.state.ak.us>, representative _ bill_ stoltze <representative _ bill_ stoltze@legis.state.ak.us>, representative _ bruce _ weyhrauch <representative _ bruce _ weyhrauch@legis.state.ak.us>, representative jim_whitaker <representative Jim _ whitaker@legis.state.ak.us>, representative _ bill_williams <representative _ bill_ williams@legis.state.ak.us>, representative yeggy _wilson <representative yeggy _ wilson@legis.state.ak.us>, representative )œlly _wolf <representative_kelly _ wolf@legis.state.ak.us>, Donny Olson <senator _ donny _ olson@legis.state.ak.us>, Ralph Seekins <senator Jalph _ seekins@legis.state.ak.us>, Tom Anderson <representative_tom _ anderson@legis.state.ak.us>, Ethan Berkowitz <representative _ ethan _ berkowitz@legis.state.ak.us>, Michael W Miller <michael_ miller@admin.state.ak.us> STATE OF ALASKA NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission (¡§AOGCC¡") proposes to adopt regulation changes in Title 20, Chapter 25, of the Alaska Administrative Code, dealing with variances and waivers and with Commission certification of certain production volumes, alternate regulatory compliance, including the following: a general variance and waiver provision would replace specific provisions in numerous sections of the AOGCC¡ Is current regulations 20 AAC 25.001 is proposed to allow use of alternative techniques, procedures, equipment, or activities other than those prescribed by current regulations; and provisions would be established to implement the AOGCC¡ Is authority under sec. 1, ch. 59, SLA 2003 20 AAC 25.233 is proposed to allow the Commission to certify certification of certain production volumes. You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by writing to AOGCC, 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501. The comments must be received no later than 4:30 p.m. on November 18, 2003. Additionally, oral or written comments may be submitted at a hearing to be held on November 13, 2003, at 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501. The hearing will begin at 9:00 a.m. and might be extended from day to day if necessary to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If you are a person with a disability who may need a special accommodation, auxiliary aid or service, or alternative communication format in order to participate in the process on the proposed regulation, please contact Jody Colombie at 793-1221 by 4:00 p.m., November 7, 2003 to ensure that any necessary accommodations can be provided. Copies of the proposed regulation changes may be obtained from the AOGCC office, 333 W. 7th Avenue, Anchorage, Alaska 99501, or by telephoning the AOGCC at 907-793-1221, or on the AOGCC website at: http://www.aogcc.alaska.gov. 20f4 ] 0/3/2003 4:] 0 PM Public Notice . . After the public comment period ends, the AOGCC will either adopt this or another proposal dealing with the same subject, without further notice, or decide to take no action on it. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTEREST COULD BE AFFECTED. Written comments received are public records and are subject to public inspection. Statutory Authority: AS 31.05.030; AS 31.05.040.. Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030. Fiscal Information: The proposed regulation changes are not expected to require an increased appropria1tion. Date: October 3, 2003 Sarah Palin Chair, Alaska Oil and Gas Conservation Commission Published: 10/3/03 AO: 02414009 ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: variances and waivers, and on certification of production volumes under sec. 1, ch. 59, SLA 2003AS 31.05.030(j) 3. Citation of regulations: 20 MC 25. 4. Reason for the proposed action: to provide for uniform treatment of variances and waivers in regulations, and to implement new legislation allow use of alternative techniques, procedures, equipment, or activities other than those prescribed by current regulations. 5. Program category and BRU affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations Jody Colombie, Alaska Oil and Gas Conservation Commission, 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501, (907) 793-1221. 8. The origin of the proposed action: state agency. 9. Date: October 3, 2003 10. Prepared by: Jody Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 3 of 4 1013/2003 4: 1 0 PM Public Notice . . Subject: Public Notice Date: Fri, 03 Oct 2003 16:46:04 -0800 From: J ody Colombie <jody _ colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: representative _ hugh_fate <representative _ hugh _fate@legis.state.ak.us>, senator _ thomas_wagoner <senator _ thomas _ wagoner@legis.state.ak.us> STATE OF ALASKA NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission (¡ §AOGCC ¡ ") proposes to adopt regulation changes in Title 20, Chapter 25, of the Alaska Administrative Code, dealing with variances and waivers and with Commission certification of certain production volumes, alternate regulatory compliance, including the following: a general variance and waiver provision would replace specific provisions in numerous sections of the AOGCC¡ Is current regulations20 AAC 25.001 is proposed to allow use of alternative techniques, procedures, equipment, or activities other than those prescribed by current regulations; and provisions would be established to implement the AOGCC¡ is authority under sec. 1, ch. 59, SLA 2003 20 AAC 25.233 is proposed to allow the Commission to certify certification of certain production volumes. You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by writing to AOGCC, 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501. The comments must be received no later than 4:30 p.m. on November 18, 2003. Additionally, oral or written comments may be submitted at a hearing to be held on November 13, 2003, at 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501. The hearing will begin at 9:00 a.m. and might be extended from day to day if necessary to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If you are a person with a disability who may need a special accommodation, auxiliary aid or service, or alternative communication format in order to participate in the process on the proposed regulation, please contact Jody Colombie at 793-1221 by 4:00 p.m., November 7, 2003 to ensure that any necessary accommodations can be provided. Copies of the proposed regulation changes may be obtained from the AOGCC office, 333 W. 7th Avenue, Anchorage, Alaska 99501, or by telephoning the AOGCC at 907-793-1221, or on the AOGCC website at: http://www.aogcc.alaska.gov. After the public comment period ends, the AOGCC will either adopt this or another proposal dealing with the same subject, without further notice, or decide to take no action on it. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTEREST COULD BE AFFECTED. Written comments received are public records and are subject to public inspection. Statutory Authority: AS 31.05.030; AS 31.05.040.. Ion ] 013/2003 4:46 PM Public Notice . . Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030. Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation. Date: October 3, 2003 Sarah Palin Chair, Alaska Oil and Gas Conservation Commission Published: 10/3/03 AO: 02414009 ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: variances and waivers, and on certification of production volumes under sec. I, ch. 59, SLA 2003AS 31. 05.030 (j) 3. Citation of regulations: 20 AAC 25. 4. Reason for the proposed action: to provide for uniform treatment of variances and waivers in regulations, and to implement new legislation allow use of alternative techniques, procedures, equipment, or activities other than those prescribed by current regulations. 5. Program category and BRU affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations Jody Colombie, Alaska Oil and Gas Conservation Commission, 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501, (907) 793-1221. 8. The origin of the proposed action: state agency. 9. Date: October 3, 2003 10. Prepared by: Jody Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission (907) 793-1221 y Colombie <iody colombie@admin.state.ak.us> 200 I OßI2003 4:46 PM Proposed Regulations . . Subject: Proposed Regulations Date: Thu, 02 Oct 2003 14:03:53 -0800 From: Jody Colombie <jody_colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission BCC: Robert E Mintz <robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubblet1@bp.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, rosew <rosew@evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, "mark.dalton" <mark.dalton@hdrinc.com>, "shannon.donnelly" <shannon.donnelly@conocophillips.com>, "mark. p. worcester" <mark. p. worcester@conocophillips.com>, "j erry.c.dethlefs" <j erry.c.dethlefs@conocophillips.com>, arlenehm <arlenehm@gci.net>, bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, burgin _ d <burgin _ d@niediak.com>, "charles.o 'donnell" <charles.o'donnell@veco.com>, "Skillern, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>, "Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg@BP.com>, "Rossberg, R Steven" <RossbeRS@BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>, "Kirchner, Joseph P" <KirchnJP@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Prancis S" <SommerPS@BP.com>, "Schultz, Mikel" <Mike1.Schultz@BP.com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>, "Platt, Janet D" <PlattJD@BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP.com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, collins_mount <collins _ mount@revenue.state.ak.us>, mckay <mckay@gci.net>, "barbara.f. fullmer" <barbara.f. fullmer@conocophillips.com>, eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>, cowo <cowo@chevrontexaco.com>, ajiii88 <ajiii88@hotmail.com>, doug_schultze <doug_ schultze@xtoenergy.com>, "hank.alford" <hank.alford@exxonmobil.com>, yesno 1 <yesno l@gci.net>, "john. w.hanes" <john. w.hanes@exxonmobil.com>, gspfoff <gspfoff@aurorapower.com>, "gregg.nady" <gregg.nady@shell.com>, "fred.steece" <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejònes@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancey <eyancey@seal-tite.net>, "james.m.ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, "Emeka.C.Ezeaku" <Emeka.C.Ezeaku@spdc.shell.com>, mark _ hanley <mark _ hanley@anadarko.com>, lof2 10/2/2003 2:04 PM Proposed Regulations . . loren _leman <loren _leman@gov.state.ak.us>, Harry R Bader <harry _ bader@dnr.state.ak.us>, julie_houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan _ hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, jimwhite <jimwhite@satx.rr.com>, Stephanie_Ross <Stephanie _ Ross@thomson.com> .. Name: Notice.pdf ~Notice.pdf Type: Acrobat (application/pdt) Encoding: base64 Name: 20 AAC 25.doc ~20 AAC 25.doc Type: WINWORD File (application/msword) Encoding: base64 Jody Colombie <iodv colombie(cì¿admin.state.ak.us> 20f2 10/2/20032:04 PM Notice . . Subject: Notice Date: Thu, 02 Oct 2003 14:00: 13 -0800 From: Jody Colombie <jody_colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish the attached tomorrow 10-3-03. Name: Ad Order form.doc ~Ad Order form.doc Type: WINWORD File (applicationlmsword) Encoding: base64 Name: Ad-Only_Notice.doc ~Ad-OnIY Notice.doc Type: WINWORD File (applicationlmsword) Encoding: base64 T ~-' rnlombie <iody colombie@admin.state. 1 lofl 10/2/2003 2:04 PM Regulation Notice . . Subject: Regulation Notice Date: Thu, 02 Oct 2003 14:00:58 -0800 From: jody _ colombie@admin.state.ak.us Organization: Alaska Oil and Gas Conservation Commission To: Cynthia B Mciver <bren_mciver@admin.state.ak.us>, Nancy Norton <Nancy _ Norton@admin.state.ak.us> Please publish on web site. Jody c::=:::====::::~::==:::::::::::::::-====:::::=::::::::===::::====::::::::=:::=:::::::::::::::::=:::::=-:==::::::::::::::~:::::===::::~:::::::::::==,::::::::==::::::::::::~:::=:::===:=_:::::::::::::::=,-:::-=::::::::::.. ~ 1 Notice Name: 1 Notice .doc - - .doc Type: WINWORD File (applicationlmsword) Encoding: base64 lofl 10/2/20032:04 PM State of Alaska AK Oil & Gas Conservation Commission 333 West 7U, Avenue Anchorage Alaska 99501 /77c:t?ká /cJ/21o 3 / . Legislative Reference Library Legislative Affairs Agency State Capitol Juneau AK 99801-1182 Mail Stop 3101 . #2 · 2003 MISCELLANEOUS BIRDS fcý//j/'c1~ / P~egister , 20 AAC 25 is amended by adding a new section to read: 20 AAC 25.001. AL TERNA TE COMPLIANCE AND WAIVERS. The commission will consider the use of alternative techniques, procedures, equipment, or activities other than those prescribed in the regulations of this chapter; if such other techniques, procedures, equipment, or activities afford a degree of protection, safety, or perfonnance equal to or better than that intended to be achieved by the regulations of this chapter. A request for the use of alternative techniques, procedures, equipment, or activities must be provided in writing and accompanied by sufficient justification to judge the equivalence of the proposal. Written approval from the commission is required prior to use. (Eff. ~ ~ _, Register ) Authority: AS 31.05.30 Register , - . 2003 MISCELLANEOUS BI.RDS 20 AAC 25.005(c)(7) is amended to read: (7) a diagram and description of the diverter system as required by 20 AAC 25.035 [,UNLESS THIS REQUIREMENT IS WAIVED BY THE COMMISSION UNDER 20 AAC 25.035(H)(2)]; (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 162; am -.-! ~_, Register ~ Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.030(g) is repealed: Repealed ~--.-!_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am~--.-!_, Register ~ Authority: AS 31.05.030 20 AAC 25.033(j) is repealed: Repealed ~~_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 162; am~-.-!_, Register ~ Authority: AS 31.05.030 2 Register _, . 2003 MISCELLANEOUS ARDS 20 AAC 25.035(c)(1)(B) is amended to read: (B) at least as large as the diameter of the hole to be drilled, unless a pilot hole with a diameter no larger than that of the vent line is drilled first; [THE COMMISSION WILL WAIVE THE REQUIREMENT OF THIS PARAGRAPH IF THE OPERATOR DEMONSTRATES, BASED ON DRILLING EXPERIENCE IN THE NEAR VICINITY, THAT DRILLING A PILOT HOLE WOULD NOT BE NECESSARY FOR SAFETY] (Eff. 4/13/80, Register 74; am 2/22/81, Register 77; am 4/2/86, Register 97; am 11/7/99, Register 152; am --.J --.J _, Register ~ Authority: AS 31.05.030 20 AAC 25.035(h) is repealed: Repealed --.J _/ _. (Eff. 4/13/80, Register 74; am 2/22/81 register 77; am 4/2/86, Register 97; am 11/7/99, Register 152; am --.J--.J_, Register ~ Authority: AS 31.05.030 20 AAC 25.036(t) is repealed: Repealed --.J --.J _. (Eff. 11/7/99, Register 152; am --.J --.J _, Register ~ AUTHORITY: AS 31.05.030 3 · 2003 MISCELLANEOUS aRDS Register 20 AAC 25.050(h) is repealed: Repealed .-----! ----1_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am ----1----1_, Register ~ AUTHORITY: AS 31.05.030 20 AAC 25.061(c) is repealed: Repealed ----1----1_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am ----1----1_, Register ~ 20 AAC 25.066(d)(3) is repealed: Eff. 11/7/99, Register 152; am 7/18/03, am Register 167, October 2003; am ----1----1_, Register ~ AUTHORITY: AS 31.05.030 20 AAC 25.112(i) is repealed: Repealed.-----!----1_. (Eff. 11/7/99, Register 152; am~~_, Register-.--J AUTHORITY: AS 31.05.030 20 AAC 25.228(j) is repealed: Repealed _/ ~ _. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am ~ ~_, Register ~ AUTHORITY: AS 31.05.030 4 Register _, . 2003 MISCELLANEOUS B.RDS 20 AAC 25 is amended by adding a new section to read: 20 AAC 25.233. Commission certification of certain production volumes. (a) A lessee that is obligated to pay the state a royalty on oil produced from a platfonn or field listed in AS 38.05. 180(f)(6)(A), (C), (E), or (G) may file with the commission a written request to certify the volume of oil production from the platfonn or field under AS 31.05.030(k). The request must identify (1) the calendar quarter or quarters during which the volume of oil production was below the applicable threshold under AS 38.05. 180(f)(6)(A), (C), (E), or (G) and for which a certification is desired, and (2) one or more prior calendar quarters during which the volume of oil production equaled or exceeded the applicable threshold. The request must be accompanied by an affidavit of a person acquainted with the facts, certifying that the requester complied with (b) of this section and setting out the names and addresses of the persons to whom the notice required under (b) of this section was mailed and the date of mailing. (b) A lessee intending to file a request under (a) of this section shall send notice ofthe request, including a copy of the request and a statement ofthe recipient's rights under (c) of this section, by certified mail to the Department of Natural Resources, Division of Oil and Gas, and to all other lessees that are obligated to pay the state a royalty on oil produced from the platfonn or field that is the subject of the request. (c) A person entitled to notice under (b) of this section may file with the commission, no later than 15 days after the date notice was mailed to the person, a statement ofthe person's position or comments regarding the request, which may include documentary evidence. A person filing a statement shall provide a copy to the requester. (d) After the time for filing statements under (c) of this section has expired, the commission will detennine whether the average daily oil production during a calendar quarter 5 · 2003 MISCELLANEOUS BIRDS Register _, from the platform or field that is the subject of the request has declined below the applicable threshold under AS 38.05. 180(f)(6)(A), (C), (E), or (G) and, if so, will certify to the Department of Natural Resources the average daily oil production volume for the calendar quarter or quarters for which the request is made. (e) The provisions of20 AAC 25.540 do not apply to a determination or certification under this section. (Eff. ~ ~ __, Register ) Authority: AS 31.05.30 AS 31.05.040 20 AAC 25.265(a)(2) is amended to read: (2) fail-safe automatic surface-controlled subsurface safety valve (SSSV) system capable of preventing an uncontrolled flow [,UNLESS ANOTHER TYPE OF SUB SURF ACE VALVE WITH THAT CAP ABILITY IS APPROVED BY THE COMMISSION] this valve must be in the tubing string and located below the mudline datum or, if permafrost is present, below the permafrost. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am ~~_, Register -> Authority: AS 31.05.030 AS 31.05.095 20 AAC 25.285(h) is repealed: Repealed ~~_. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am ~---.J_, Register -> AUTHORITY: AS 31.05.030 6 Register _, . 2003 MISCELLANEOUS aRDS 20 AAC 25.286(g) is repealed: Repealed-.J_/_. (Eff. 11/7/99, Register 152; am-.J-.J_, Register-.-J AUTHORITY: AS 31.05.030 20 AAC 25.287(f) is repealed. Repealed-.J-.J_. (Eff. 11/7/99, Register 152; am-.J-.J_, Register ~ Authority: AS 31.05.030 7 Register _, 2003 MISCELLANEOUS RDS (a) The commission will consider the use rocedures, 20 AAC 25 is amended by adding a new section to re 20 AAC 25.001. ALTERNATE COMPLIANCE A equipment, or activities other than those prescribed i other techniques, procedures, equipment, or activities afford a degree of protection, safety, or perfonnance equal to or better than that intended to be achieved by the regulations of this chapter. A request for the use of alternative techniques, procedures, equipment, or activities must be provided in writing and accompanied by sufficient justification to judge the equivalence of the proposal. Written approval from the commission is required prior to use. Gb) The commission may approve waivers from the requirements of the regulations of this chapter when such waiver~ssary for the proper control of a well, the facilitati~'Y-: ~ the proper development of a lease, the conservation of natural resources, or the protection ~ correlative rightJ (Eff. ~ _/ _, Register ) Authority: AS 31.05.30 1 Register _, . 2003 MISCELLANEOUS aRDS 20 AAC 25.005(c)(7) is amended to read: (7) a diagram and description of the diverter system as required by 20 AAC 25.035 [,UNLESS THIS REQUIREMENT IS WAIVED BY THE COMMISSION UNDER 20 AAC 25.035(H)(2)]; (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 162; am ~~_, Register ~ Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.030(g) is repealed: Repealed ~_/_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am ~ ~ _, Register ~ Authority: AS 31.05.030 20 AAC 25.033(j) is repealed: Repealed ~~_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 162; am~--.J_, Register ~ Authority: AS 31.05.030 2 Register _, . 2003 MISCELLANEOUS Ls 20 AAC 25.035( c)(1 )(B) is amended to read: (B) at least as large as the diameter of the hole to be drilled, unless a pilot hole with a diameter no larger than that of the vent line is drilled first; [THE COMMISSION WILL WAIVE THE REQUIREMENT OF THIS PARAGRAPH IF THE OPERA TOR DEMONSTRATES, BASED ON DRILLING EXPERIENCE IN THE NEAR VICINITY, THAT DRILLING A PILOT HOLE WOULD NOT BE NECESSARY FOR SAFETY] (Eff. 4/13/80, Register 74; am 2/22/81, Register 77; am 4/2/86, Register 97; am 11/7/99, Register 152; am~~_, Register ~ Authority: AS 31.05.030 20 AAC 25.035(h) is repealed: Repealed ~~_. (Eff. 4/13/80, Register 74; am 2/22/81 register 77; am 4/2/86, Register 97; am 11/7/99, Register 152; am~~_, Register ~ Authority: AS 31.05.030 20 AAC 25.036(f) is repealed: Repealed ~ ~ _. (Eff. 11/7/99, Register 152; am ~ ~ _, Register ~ AUTHORITY: AS 31.05.030 3 Register , . 2003 MISCELLANEOUS B.RDS 20 AAC 25.050(h) is repealed: Repealed ~~_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am ~ ~ _, Register ~ AUTHORITY: AS 31.05.030 20 AAC 25.061(c) is repealed: Repealed ~_/_. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am ~ ~ _, Register ~ 20 AAC 25.066(d)(3) is repealed: Eff. 11/7/99, Register 152; am 7/18/03, am Register 167, October 2003; am ~~_, Register ~ AUTHORITY: AS 31.05.030 20 AAC 25.112(i) is repealed: Repealed~~_. (Eff. 11/7/99, Register 152; am~~_, Register ~ AUTHORITY: AS 31.05.030 20 AAC 25.228(j) is repealed: Repealed ~~_. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am ~~_, Register ~ AUTHORITY: AS 31.05.030 4 Register . 2003 MISCELLANEOUS B.RDS 20 AAC 25 is amended by adding a new section to read: 20 AAC 25.233. Commission certification of certain production volumes. (a) A lessee that is obligated to pay the state a royalty on oil produced from a platform or field listed in AS 38.05. 180(f)(6)(A), (C), (E), or (G) may file with the commission a written request to certify the volume of oil production from the platform or field under AS 31.05.030(k). The request must identify (1) the calendar quarter or quarters during which the volume of oil production was below the applicable threshold under AS 38.05. 180(f)(6)(A), (C), (E), or (G) and for which a certification is desired, and (2) one or more prior calendar quarters during which the volume of oil production equaled or exceeded the applicable threshold. The request must be accompanied by an affidavit of a person acquainted with the facts, certifying that the requester complied with (b) of this section and setting out the names and addresses of the persons to whom the notice required under (b) of this section was mailed and the date of mailing. (b) A lessee intending to file a request under (a) of this section shall send notice of the request, including a copy of the request and a statement ofthe recipient's rights under (c) ofthis section, by certified mail to the Department of Natural Resources, Division of Oil and Gas, and to all other lessees that are obligated to pay the state a royalty on oil produced rrom the platform or field that is the subject of the request. (c) A person entitled to notice under (b) of this section may file with the commission, no later than 15 days after the date notice was mailed to the person, a statement ofthe person's position or comments regarding the request, which may include documentary evidence. A person filing a statement shall provide a copy to the requester. (d) After the time for filing statements under (c) of this section has expired, the commission will determine whether the average daily oil production during a calendar quarter 5 Register , - . 2003 MISCELLANEOUS ARDS from the platform or field that is the subject ofthe request has declined below the applicable threshold under AS 38.05.180(f)(6)(A), (C), (E), or (G) and, if so, will certify to the Department of Natural Resources the average daily oil production volume for the calendar quarter or quarters for which the request is made. (e) The provisions of20 AAC 25.540 do not apply to a determination or certification under this section. (Eff. ~ ~ _, Register ) Authority: AS 31.05.30 AS 31.05.040 20 AAC 25.265(a)(2) is amended to read: (2) fail-safe automatic surface-controlled subsurface safety valve (SSSV) system capable of preventing an uncontrolled flow [,UNLESS ANOTHER TYPE OF SUBSURFACE VALVE WITH THAT CAP ABILITY IS APPROVED BY THE COMMISSION] this valve must be in the tubing string and located below the mudline datum or, if permafrost is present, below the permafrost. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am --.J--.J_, Register --.J Authority: AS 31.05.030 AS 31.05.095 20 AAC 25.285(h) is repealed: Repealed --.J--.J_. (Eff. 4/2/86, Register 97; am 11/7/99, Register 152; am _/--.J_, Register --.J AUTHORITY: AS 31.05.030 6 Register . 2003 MISCELLANEOUS aRDS 20 AAC 25.286(g) is repealed: Repealed~~_. (Eff. 11/7/99, Register 152; am~~_, Register ~ AUTHORITY: AS 31.05.030 20 AAC 25.287(f) is repealed. Repealed~~_. (Eff. 11/7/99, Register 152; am~~_, Register ~ Authority: AS 31.05.030 7 ¡t# . . Definitions Waiver - Techniques, procedures, equipment, or activities that deviate from the operating requirements of the regulations and that are necessary for facilitation of the proper development of the lease and afford an acceptable degree of protection, safety, or performance, usually with specific operating restrictions and limitations (e.g., monitoring) Alternate Compliance - Techniques, procedures, equipment, or activities other than those prescribed in the regulations and that afford a degree of protection, safety, or performance equal to or better than that intended to be achieved by the regulations. Affected Regulations By adopting the proposed regulation "Alternate Compliance and Waivers", the following existing regulations should be deleted (see attached for details). Where specific language is quoted, the intent is to remove just the reference to the waiver or variance). l 20 AAC 25.005(c)(7) - Pennit to Drill ("unless this requirement is waived.. .") V 20 AAC 25.030(g) - Casing and Cementing J 20 AAC 25.033(j) - Primary Well Control for Drilling: Drilling Fluid Program and Drilling Fluid System J 20 AAC 25.035(c)(l)(B) - Secondary Well Control for Primary Drilling and Completion: Blowout Prevention Equipment and Diverter Requirements ("the commission will waive...") j 20 AAC 25.035(h) - Secondary Well Control for Primary Drilling and Completion: Blowout I Prevention Equipment and Diverter Requirements " 20 AAC 25.036(f) - Secondary Well Control for Through-Tubing Drilling and Completion: J Blowout Prevention Equipment Requirements . .. 20 AAC 25.050(h) - Wellbore Surveys ,~ l \-- V 20 AAC 25.061(c) - Well Site Surveys ............ 2QAAC 2$..OQ(j(d).-Gas.Detection (newly adopted wording) fe()2aÎerJ 70 A AC 25.Q71(ø)~Geologft-.Data ftfld Lug3 ~ A AC ?~ - 'felIIp'U"::Jry Shutdown of Drilling or Completion Oper::Jtion~ ("w~;"e tRs ~l1Íremetífs.. .") \ .2Q..ð,.Ar--.2.2:.lJ-O(d){.2}-8nspvudt:J \iVdb ("the øøæn1Í~5jul1 wi1l vvlii',,, tho r-etplÌrempnt ") ,¡ 20 AAC 25.112(i) - Well Plugging Requirements 20 AAC ?S 172(a) Off:shUIt: Lo~otJ. Clelifftfl.0o ("waivÐ n~quire:mcnt3 of this ~ub6~(.tiðfl") V 20 AAC 25.228(j) - Production Measurement Equipment for Custody Transfer o an -Oil Ratio . . . 20 AAC 25.265(a)(2) - Automatic Shut-in Equipment ("unless another type...is approved by the commission") 20 e s ./ 20 AAC 25.285(h) ~ Secondary Well Control for Tubing Workover Operations: Blowout Prevention Equipment Requirements ,J 20 AAC 25.286(g) - Well Control Requirements for Workstring Service Operations -/20 AAC 25.287(f) - Well Control Equipment for Wireline 0 erations C 25 . IOn 0 ariances ("authorize requirements... ess eqUlrements in this chapter.. .") nJec IOn ontrol VarIance" opeIatedWññless --.' #1 >.. 08/16/2003 ~ ATTORNEY GENERAL'S. -t AOGCC ~001/010 '" Office of the Attorney General Oil, Gas & Mining Section 1031 W. 4th Avenue, Suite 200 Anchorage, AK 99501-1994 Phone: (907) 269-5255 Fax: (907)279-8644 Fax Transmission The Information contained in this fax is confidential andlor privileged. This fax is intended to be reviewed initially by only the individual named below. If the reader of this transmIttal page Is not the intended recipient or a representative of the intended recipient you are hereby notified that any review, dissemination or copying of this fax or the Information contained herein is prohibited. If you have received this fax in error, please immediately notify the sender by telephone and return this fax to the $ender at the above address. Thank you. To: From: Subject: Message: k \Å. \f\. J f tfÝ'.-j Cd I.t-'\ v-'\ l ! Sf (i' J¡¡ ~v /' Fax#: Rr~ fYI, ~~L Date: / /¡¡ / V J £;3 (¿;;- Pages: /D 1 Including cover sheet J rfJ; c( )~/ dClll1f l ~o l,1-! 5ß (cf)~· {fA C/1ir1- ;: w~1 >~C'vt rj W \/\0 rd'/' "II Ir r~~ P?1 ¡-þ~7 qþ€ RECEIVED SEP 1 6 2003 Alaska Oil & Gas Cons. Colì1lTlÎssion Anchorage If you do not receive all the pages or have any problems with this fax, lease call for assistance at 907 269-5255. I:\FORMSIFAX· CONFIDENilAL..DOC.DOC 08/18/200311:35 FAX 807.844 ATTORNEV GENERAL'S4IIÞ .. AOGCC ~002/010 What to Do About Unocal's Request to Certify Reductions in Oil Platform Production Volumes under SB 185 SB 185 (pertinent excerpts of which are attached) p.ro~ reductions when oil production from certain Coo t fieldS or nlatfonns fàlls ",--be ow prescn ed limits. 1hiSJ'¡ll-~~~l~~~te:~er 9. Although DNR admInIsters the royaliYJ;rovisions, the Com . . IS ~ency that certifies the declines in oil production volumes. As add~~.~~ W3 185, AS 31.05,0300) provides: '--1w. 1,lWWUV The commission shall certifY to the Department of Natural Resources the volume of oil production from a field or platform for the purpose of AS 38.05.180(f)(6)(A), (E), and (G). In July, Unocal wrote the Commission requesting that qualifying platfonns be "automatically certified" and stating specifically that the Baker and Bruce platforms qualified. I don't know what "automatically certified" means, but from speaking to Steve McMains I understand that the Baker and Bruce have been producing at levels below the statutory thresholds. (I believe Baker has been shut in recently - if so, Unocal should probably be asked to update its request.) How should the Commission respond to Unocal's request? There are procedural choices about how to implement the Commission's function under SB 185, and there are also choices about what factual inquiries should go into making the "certification" called for under the legislation. Finally~ there are timing questions to resolve. 1. Procedural Issues A. Need for regulations As discussed in my previous communications regarding implementation of SB 185 and regarding the superior court decision in the Greenpeace case, the Commission needs to have regulations addressing the procedures to fol1ow when making certifications under AS 31.05.030(j). First of all, AS 31.05.040(a) provides that the "commission shall adopt regulations governing practice and procedure before it under this chapter." (Emphasis supplied.) Second, if we generalize fTom the court's opinion in Greenpeace, certifications under AS 31.05.0300) are a species of "action" that under AS 31.05 .060(b) "must be perfonned in accordance with regulations of the commission designed to afford persons affected by the action notice and an opportunity to be heard." (Emphasis supplied.) 1 09/18/2003 11:35 FAX 907illf844 A TTORHEV GEHERAL' S . ~ AOGCC 141 003/010 One approach would be to interpret the existing notice and hearing regulations in 20 AAC 25.540 as applying to these certifications. This has the advantage of being ready-made. However, it does require 30 days public notice before the Commission can act. (This mayor may oot be an immediate problem - see below on timing.) Also, for the reasons explained below, the Commission would probably want to supplement sec. 540 to provide for direct notice to DNR and to other lessees wheo requests for certifications are made. If the Commission would prefer different, perhaps less fonnal procedures for certifications than those set out in sec. 540, it can certainly propose and adopt regulations to accomplish that. The problem is that the timing ofUnocal's application calls for action before such regulations can take effect. In the interim, to use procedures other than those of20 AAC 25.540, the Commission would have to (a) interpret sec. 540 as not covering certifications and (b) justify following different ad hoc procedures despite the apparent statutory requirements to set out procedures in regulation. Perhaps (a) could be accomplished by pointing to the fact that 20 AAC 25.540(a) concerns requests "to issue an order," and by interpreting "order" as implying a more formal type of Commission action than "certify[ing]" a volume under AS 31.05.0300). Perhaps (b) could be accomplished by pointing to the fact that there is necessarily a lag between when a new statutory authority takes effect and when implementing regulations take effect, and that the Commission is obligated to act on Unocal's request in the meantime, leaving it no option other than to come up with ad hoc procedures, This approach is more risky than following sec. 540, but it is probably a reasonable option. B. Content of procedures If the Commission decides it would prefer other procedures than those in sec. 540, what should they be? As I understand it, the process of determining volumes W1der AS 31.05.0300) is pretty simple and straightforward, and in general there is probably no need for input from the lessee beyond what would be in the written request for a certification. The main thing is to ensure that those "affected by the action" be afforded "notice and an opportunity to be heard." AS 31.05.060(b). Unlike most Commission actions, which deal with an operator, certifications under AS 31.05 .030(j) directly affect lessees. As such, probably every lessee that produces through the same platform or has an ownership interest in the same field which a request for certification concerns should receive notice of the request. Also, DNR is clearly affected because its royalties stand to be reduced. So DNR should also receive notice. In line with the Commission's 2 08/18/2003 11:35 FAX 8074ilÞ844 A TTORNEV GENERAL'S I -7 AOGGC ~004/010 previous holdings, this should be the obligation of the applicant. (Note: even if the Commission decides to follow sec. 540 in handling Unocal's application, it should require Unocal to notify other lessees and DNR .) Perhaps the simplest way to provide "an opportunity to be heard" to all concerned - including the applicant, other lessees, and DNR - would be for the Commission to respond to an application for certification by internally developing a proposed certification decision and then circulating that proposed decision to the lessees and DNR, allowing them a certain amount of time to comment or object in writing. Then the Conunission would issue its final decision. Alternatively, the lessees and DNR could be given a certain amount of time, e.g., 10 days, within which to comment when they are notified of the application. Then the Commission would issue its final decision, without first circulating a proposed decision. Although unlikely, I suppose it is conceivable that there could be a serious factual dispute - e.g., if the operator's reported volumes for a platform depended on allocation from periodic well tests and the Commission or DNR questioned the well tests or the allocation (see below). In that event, the procedures might provide for a hearing to be held in accordance with the procedures set out in sec. 540. II. Factual Inquiries cfÝ SB 185 provides for royalty reduction when, for example, "oil production that equaled or exceeded a volume of 1,200 barrels a day [from a specified platform] ~s to less than that amount for a period of at least one calendar quarter, as c¡erti[ìed by the Alaska Oil and Gas Conservation Commission. . . ." AS 38,05. 180(f)(6)(A) (emphasis supplied). Such volumes are to be calculated "based on the average daily production during the calendar quarter." AS 38.05.180(f)(6)(1). A basic question is whether the Commission should make such certifications solely on the basis of the operator's production reports (on Form 10- 405) or whether the Corrunission should look behind the reports to verify their accuracy. I don't know enough to have an opinion on this question. I can, however, point to several provisions in the Commission's regulations that suggest factual inquiries that could be made if the Commission wished to do so. First, has the operator complied with the production measurement requirements of 20 MC 25.2287 Second, in the case of a platfonn whose produced fluids are commingled with produced fluids from one or more other platforms before 3 08/18/2003 11 :35 FAX 807.844 ATTORNEV GENERAL'S. + AOGCC ~ 005/010 separation and LACT metering, has the operator complied with the well testing and allocation requirements of20 MC 25.230? My impression from the infonnallegislative history of the bill is that DNR contemplated that the Commission would just rely on the operator's production reports, but perhaps this could be checked into further. III. Timing The ftrst whole month occuning after the effective date of SB 185 is October~ and I understand that DNR would apply a change in royalty rates only at the beginning of a month. From my conversation with DNR's royalty accounting manager, I understand that DNR is anticipating that one or more platfonns might qualify for a royalty reduction beginning in October, based on the Commission's certifYing the production volumes for the July - September 2003 calendar quarter. To allow for timely royalty calculation and reporting for October (which is due in late November), the Commission's certification decisions would be needed by early November. It is conceivable that Unoeal might have a different interpretation of how timing should work under SB 185, but what is described in the preceding paragraph seems right to me. 4 09/16/2003 11:35 FAX 907~644 ATTORNEV GENERAL'S. ~ AOGCC IâI006/010 '. 23-LS0926\Z.A (LIMITED RUN FOR ALL ADDmONAL SPONSORSHIPS) HOUSE CS FOR CS FOR SENATE BILL NO. 185(O&G) am H IN THE LEGISLATURE OF THE STATE OF ALASKA TWENTY -THIRD LEGISLATURE - FIRST SESSION BY THE HOOSE SPECIAL COMMITTEE ON OIL AND GAS Amended: 5119/03 Offered: 5/18103 SPOdSOr(S): SENATORS WAGONER, Wilken, Ben Stevens, oYlon REPRESENTATIVES Chenault, Kohring A BILL FOR AN ACT ENTITLED 1 "An Act providing tor a reduction of royalty on certain oil produced from Cook Inlet 2 submerged land, and for a credit for certain exploration expeme8 against oil and gas 3 properties production tues on oil and gas produced from a lease or property in the 4 state." 5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6 1< Section 1. .AS 31.05,030 is amended by adding a new subsection to read: 7 0) The commission shall certify to the Department of Natural Resources the 8 volume of oil production from a field or platform for the purposes of 9 AS 38.05.l80(f)(6)(A), (C), (E), and (0), 10 * Sec. 2. AS 38.05.1 SO(f) is amended by adding a new paragraph to read: 11 (6) notwithstanding and in lieu of a requirement in the leasing method 12 chosen of a minimum fixed royalty share, or the royalty provision of a lease, for leases 13 unitized as described in (p) of this section, leases subject to an agreement described in 14 (s) or (t) ofthjs section, or interests unitized under AS 31.05, the lessee of all or part of S80J85f -l~ Bes eSSB J85(O&G) am H New Tex~ tTnderlined (DELETED TEXT BRACKETED) 08/18/2003 11:35 FAX 8074ilÞ844 A HORNEV GENERAL'S. .. AOGCC ~007/010 23-LS0926\Z.A 1 an oil field located offshore in Cook Inlet on which an oil production platfonn 2 specified in (A), (C), or (E) of this paragraph operates, or the lessee of all or part ofthe 3 field located offshore in Cook Inlet and described in (0) of this paragraph, 4 (A) shall pay a royalty of five percent on oil produced from the 5 platform ¡foil production that equa.led or exceeded a volume of 1,200 barrels Ii 6 day declines to less than that amount for a period of at least one calendar 7 quarter, as certified by the Alaska Oil and Gas Conservation Commission, for 8 as long as the volume of oil produced from the platform remains less than 9 1,200 barrels a day; the provisions of this subparagraph apply to 10 (i) Dolly; 11 (ii) Grayling; 12 (Hi) King Salmon; 13 (iv) Steelhead; and 14 (v) Monopod; 15 (B) shall pay a royalty calculated under this subparagraph if the 16 volume of oil produced from the platform that was certified by the Alaska Oil 17 and Gas Conservation Commission under (A) of this paragraph la.ter increases 18 to 1,200 or more barrels a day and remains at 1,200 or more barrels a day for a 19 period of at least one calendar quarter; until the royalty rate determined under 20 this subparagraph applies, the royalty continues to be calculated under (A) of 21 this paragraph; on and after the first day of the month following the month the 22 increased production exceeds the period specified in this subparagraph, the 23 royalty payable under this subparagraph is 24 (i) for production of at least 1,200 barrels a day but not 25 more than 1,300 barrels a day - seven percent; 26 (ii) for production of more than 1,300 barTels a day but 27 not more than 1,400 barrels a day - 8.5 percent; 28 (iii) for production of more than 1,400 barrels a day but 29 not more than 1,500 barrels a day - 10 percent; and 30 (iv) for production of more than 1,500 barrels a day - 31 12.5 percent; Hes CSSB 18S(O&G) am H -2- New Text Underlined [DELETE!J TEXT BRACKETED] S80185f 09/18/2003 11:35 FAX 9074ilÞ844 ATTORNEV GENERAL'S 4IIÞ ~ AOGCC 141 008/010 23-LS0926\Z.A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 (C) shall pay a royalty of five percent on oil produced from the platform if oil production that equaled or exceeded a volume of 975 barrels a day declines to less than that amount for a period of at least one calendar quarter, as certified by the Alaska Oil and Gas Conservation Commission, for as long as the volume of oil produced from the platfonn remains less than 975 barrels a day; the provisions of this subparagraph apply to (i) Baker; (H) Dillon; (iíí) XTO.A; and (iv) XTO.C; (D) shall pay a royalty calculated under this subparagraph if the volume of oil produced from the platform that was certified by the Alaska Oil and Gas Conservation Commission under (C) of this paragraph later increases to 975 or more barrels a day and remains at 975 or more barrels a day for a period of at least one calendar quarter; until the royalty rate determined under this subpara.graph applies, the royalty continues to be ca.lculated under (C) of this paragraph; on and after the first day of the month following the month the increased production exceeds the period specified in this subparagraph, the royalty payable under this subparagraph is (i) for production of at least 975 barrels a day but not more than 1,100 barrels a day - seven percent; (íi) for production of more than 1,100 barrels a day but not more than 1,200 barrels a day - 8.5 percent; (iii) for production of more than 1,200 barrels a day but not more than 1,350 barrels a day - 10 percent; and (iv) for production of more than ] ,350 barrels a day - 12.5 percent; (E) shaU pay a royalty of five percent on oil produced &om the platfonn if oil production that equaled or exceeded a volume of 750 barrels a day declines to less than that amount for a period of at least one calendar quarter, as certified by the Alaska Oil and Gas Conservation Commission, for SB0185f -3- HCS CSSB 185(O&G) am H Nelli 'Text Uncierli.ned {DELETED TEXT BRACKETED} 09/16/2003 11:35 FAX 9074ìli644 A TTORNEV GENERAL'S. ~ AOGCC 141 009/010 23-LS0926\Z.A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 as long as the volume of oil produced from the platfonn remains less than 750 barrels a day; the provisions of this subparagraph apply to (i) Granite Point; (îi) Anna; and (Hi) Bruce; (F) shan pay a royalty calculated under this subparagraph if the volume of oil produced from the platfonn that was certified by the Alaska Oil and Gas Conservation Commission under (B) of this paragraph later increases to 750 or more barrels a day and remains at 750 or more barrels a day for a period of at least one calendar quarter; until the royalty rate determined under this subparagraph applies, the royalty continues to be calculated under (E) of this paragraph; on and after the first day of the month following the month the increased production excee4s the period specified in this subparagraph, the royalty payable under this subparagraph is (i) for production of at least 750 barrels a day but not more than 850 barrels a day - seven percent; (ii) for production of more than 850 barrels a day but not more than J ,000 barrels a day - 8.5 percent; (Hi) for production of more than 1,000 barrels a day but not more than 1,200 barrels a day - 10 percent; and (iv) for production of more than 1,200 barrels a day - 12.5 percent; (0) shall pay a royalty of five percent on 011 produced from the field if oil production that equaled Or exceeded a volume of 750 barrels a day declines to less than that amount for a perÎod of at least one calendar quarter, as certified by the Alaska Oil and Gas Conservation Commission, for as long as the volume of oil produced from the field remains less than 750 barrels a day; the provisions of this subparagraph apply to the West McArthur River field; (H) shall pay a royalty calculated under this subparagraph ¡fthe volume of oil produced ÍÌ'om the field that was certified by the Alaska Oil and HCS CSSB 185(O&G) am H ~4~ New Text underlined [~ELETED TEXT BRACKETED] SB018Sf .. 08/18/2003 11:35 FAX 8074jlþ844 ATTORNEV GENERAL'S 4IíÞ ~ AOGCC 141 010/010 23-LS0926\Z.A 1 Gas Conservation Commission under (G) of this paragraph later increases to 2 750 or more barrels a day and remains at 750 or more barrels a day for a period 3 of at least one calendar quarter; until the royalty rate determined under this 4 subparagraph applies, the royalty continues to be calculated under (0) of this 5 paragraph; on and after the first day of the month following the month the 6 increased production exceeds the period specified in this subparagraph, the 7 royalty payable under this subparagraph is 8 (i) for production of at least 750 barrels a day but not 9 more than 850 barrels a day - seven peooent; 10 (ii) for production of more than 850 barrels a day but 11 not more than 1,000 barrels a day - 8.5 percent; 12 (iii) for production of more than 1,000 barrels a day but 13 not more than 1,200 barrels a day - 10 percent; and 14 (iv) for production of more than 1,200 barrels a day - 15 12.5 percent; and 16 (1) may obtain the benefits of the royalty adjustments set out in 17 (A) - (H) of this paragraph only if the commissioner determines that the 18 reduction in production from the platform or the field is ] 9 (i) based on the average daily production during the 20 calendar quarter based on reservoir conditions; and 2] (ii) not the result of short-tenn production declines due 22 to mechanical or other choke-back factors, temporary shutdowns or 23 decreased production due to environmental or facility constraints, or 24 market conditions. 25 .. Sec. 3. AS 43.55 is amended by adding a new section to read: 26 Sec. 43.55.025. Oil and gas exploration tax credit. (a) Subject to the tenns 27 and conditions of this section, on oil and gas produced on or after July 1, 2004, a 28 credit against the tax due under tIUs ohapter is allowed in an amount equal to 29 (1) 20 percent of the total exploration expenditures that qualify under 30 (b) and (c) of this section, 20 percent of the total exploration expenditures that qualify 31 under (b) and (d) of this section, or both, for a total credit that does not exceed 40 SBot8!! -5- HCS CSSB J85(O&G) am H New Text Up,derlined [DELETED TEXT BRACKETED] . . AGENCY CHECKLIST/"REGULJ\R"REGUÏ.;ATIONS" ':"i\~· ",C',·.. ,-.:.-. ", ....,. ._ - .. .~.~ -"-. ".' ..--....-.....--.-....,..--.-..-,. ~"--~-" ..,.. --.. ' '.. -,.. "-.'."'" '''''>--';'0:r::-:';_~~o'?7,~,>:{);"t¡;j'_:':\: '·APPENDntAt . AGENCY CHECKLIST - "REGULAR" REGULATIONS DRAFTING -L Discuss project timeline with legislation and regulations section if the project has an effective date deadline , or other urgency or is lengthy or complex. 4 Proposed regulations drafted and reviewed by agency in accordance with law and this manual. ~ Prepare fiscal note, if necessary. Appendix F. ~ Draft the public notice of proposed regulations; prepare additional regulations notice infonnation. Public notice must include: (1) references to statutory authority and statutes being implemented, interpreted, or made specific; (2) infonnative summary ÚlQ! text) of regulations; (3) summary of fiscal infonnation; (4) deadline and address for submission of written comments (if an oral hearing is held, the time, date, and place of the hearing); and (5) any infonnation required by the relevant program statute. Appendices D and E. Request the regulations attorney to open Department of Law file (Appendix G) and agency attorney review of draft regulations and draft public notice. ~ ./'- " j PUBLICATION AND DISTRIBUTION OF· NOTICE ~ Published in newspaper(s) of general circulatiOj} or trade joumal(s); request return of affidavit of _ publication trom newspapers and trade journals. ~ Furnished to the head of the department in which adopting agency is located (if adopting agency is not a ,(I\'\À principal department). - J..W.... Furnished to all persons on "interested persons" list and others thought to be interested. ___ _ Furnished to the regulations attornev in the Department of Law (along with proposed regulations). ~ _ Electronically transmitted to all incumbent (and newly elected) state legislators; furnished to Legislative Affairs Agency (library). Additional regulations notice infonnation sent with notice to interested persons, legislators, Legislative Affairs Agency (library), and regulations attorney. Appendix E. Notice and additional regulations notice infonnation posted on the Alaska Online Public Notice System. _ Prepare affidavit of notice of proposed regulation adoption. Appendix H. PUBLIC COMMENT Written comments collected. _ Oral public hearing, if any, conducted; prepare affidavit of oral hearing. Appendix I. _ Written comments and any oral comments received before deadline are carefully considered, including comments on costs of compliance to private persons. Use or rejection of written comments is documented (not applicable to boards and commissions). . ADOPTION OF REGULATIONS _ Final version of regulations is prepared in proper fmal fonnat (see pp. 65 - 69 of Ch. 7 and sample regulations in Appendix C). _ Agency fonnally adopts regulations by signing adoption order or, for a board or commission, voting to adopt during a properly noticed public meeting; certification order prepared, if appropriate. Appendices J and L. Delegation attached, if required. Appendices 0 and P. Designation as "acting commissioner" attached, if required. Relevant portion of minutes of board or commission meeting and staff affidavit prepared, if certification order was signed. Appendices M and N. Affidavit of agency record of public comment prepared (Appendix K) (not applicable to boards and commissions). . TRANSMITTAL TO DEPARTMENT OF LAW Completed project is sent to the regulations attorney in the Department of Law. Transmittal must include: _ 1. cover memo to the regulations attorney stating the Department of Law file number, any particular issues regarding the project, noting any urgency or requested effective date, and requesting review and approval; Appendix Q; 2. original and one copy of final version of regulations for Department of Law's use; Revised June 2002 Page 14a· . . APPENDIX A", ~" 0"- ;.i;_~,~:.;(_;.:¡ ·:>.AGÉN:CY·;GIIDBoKtIsrj¡';IŒGULÄR,í·REGULÀTIONSf .. .. ,_ -. .." ...... C-, _.. "," .." ..... , "'._,"" ..... ',.... ,_,' .." ...... .,._,0'_'.',.. ..... '0. .. ',,' _. ._. ..,' c' c. -',. .....~.. .... ",." ".... "...', .0 c., .. " .. .. .. .. .." .. _ .. ...0 __.. .. .. .. .... _ .. _ .... __.. .. FILING AND EFFECTIVE DATES Date of Department of Law approval of regulations. Date regulations filed by the lieutenant governor's office, unless returned under AS 44.62.040(c), if applicable. Effective date of regulations. Summary of text of filed regulations, indicating the effective date, posted on the Alaska Online Public Notice System. - 3. - 4. - 5. 6. - 7. 8. 9. 10. - 11. - 12. - 13. - 14. one copy of final version of regulations and public notice for the governor's office use (not applicable to boards and commissions); original signed adoption order or certification order; a copy of any delegation of authority or "acting commissioner" designation; relevant minutes of board or commission meeting and staff affidavit, if a certification order is being submitted; a full-size original or copy of public notice; additional regulations notice information form that was distributed with the public notice; fiscal note, if required; original affidavit of notic.e of proposed regulation adoption; original publishers' affidavits of publication; original affidavit of oral hearing, if one was held; original affidavit of agency record of public comment (not applicable to boards and commissions); any other relevant documents (such as material adopted by reference). 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