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HomeMy WebLinkAboutO 082 • • 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. 0 1 0 ( 8 a- Order File Identifier Organizing (done) ❑ Two -sided IM DIIIIIl IIU ❑ Rescan Needed I 1 1111 I 1 111 RESCAN DIGITAL DATA OVERSIZED (Scannable) ❑ Color Items: ❑ Diskettes, No. ❑ Maps: ❑ Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: CMaria Date: 6 / 0 / 3 Project Proofing II 01111111111 , BY: Maria Date: • 13 /5/ u Scanning Preparation x 30 = + = TOTAL PAGES 1 1 BY: 412. Date: (Count does not include cover sheet) VI 3 /s/ Production Scanning 111111 IN II III Stage 1 Page Count from Scanned File: 0 Q. (Count does include cover sheet) Page Count Matches Number in Scanning Pr paration: YES NO BY: Date: 1,19 i 9 / /s/ MI Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ at this point unless rescanning is required. I 1 011111111111 ReScanned 111111111111 11111 BY: Maria Date: /s/ Comments about this file: Quality Checked III IIIII III II'I III 1/17/2012 Orders File Cover Page.doc • S INDEX OTHER NO.82 Permit to Drill Fee Regulations 1. April 2, 2012 Memorandum from AOGCC to Deborah E. Behr (Legislation and Regulations Section) re: File opening request for new regulations project to eliminate the filing fee for an application for a permit to drill 2. April 4, 2012 Behr's response to AOGCC re: Regulations File Opening 3. June 7, 2012 Public hearing transcript and sign -in sheet 4. July 16, 2012 Memorandum from AOGCC to Regulations Attorney re: Request for Legal Review of Regulations Project 5. November 15, 2012 Public Notice of Proposed Changes in the Regulations of AOGCC, affidavit of publication, email distribution, and mailings 6. January 8, 2013 Public hearing transcript and sign -in sheet 7. January 11, 2013 Memorandum from AOGCC to Behr re: Request for Legal Review of Regulations Project 8. February 21, 2013 Approval of regulation changes 9. April 4, 2013 Filing Certification, Lieutenant Governor INDEX OTHER NO.82 Permit to Drill Fee Regulations S Amended Regulations dealing with obsolete references to filing fee for Permit to Drill: 20 AAC 25.005(c)(1), (e)(2); 20 AAC 25.015(a)(1), (b)(1); 20 AAC 25.605(a). The Alaska Oil and Gas Conservation Commission has amended its regulations dealing with obsolete references to filing fee for Permit to Drill: 20 AAC 25.005(c)(1), (e)(2); 20 AAC 25.015(a)(1), (b)(1); 20 AAC 25.605(a). The amended regulation also eliminates the filing fees required to accompany an application for a Permit to Drill. The Lieutenant Governor signed and filed the regulation changes on March 5, 2013, with an effective date of April 4, 2013. For further information or to obtain a copy of the amended regulations, contact Jody Colombie at (907) 793 -1221, fax (907) 276 -7542, or e-mail jody.colombie @alaska.gov. • • Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, March 26, 2013 3:51 PM To: Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Bender, Makana K (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqua', Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Wallace, Chris D (DOA); (michael j .nelson @conocophillips.com); Abbie Jossie; AKDCWelllntegrityCoordinator; alaska @petrocalc.com; Alexander Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer @ap.org; Bill Penrose; Bill Walker; Bowen Roberts; Brian Havelock; Burdick, John D (DNR); caunderwood @marathonoil.com; Cliff Posey Crandall, Krissell; D Lawrence; Daryl J. Kleppin; Dave Harbour Dave Matthews; David Boelens; David Duffy; David House; David Scott; David Steingreaber; Davide Simeone; ddonkel @cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Elowe, Kristin; Evans, John R (LDZ)q; Francis S. Sommer; Gary Laughlin; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L; Greg Duggin; Gregg Nady; Gregory Geddes; gspfoff; Jdarlington (jarlington @gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Lastufka; news @radiokenai.com; Easton, John R (DNR); John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Louisiana Cutler; Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark P. Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; Mike Bill; mike @kbbi.org; Mike Morgan; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; knelson @petroleumnews.com; Nick W. Glover; Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Deibridge; Renan Vanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Sandra Haggard; Sara Leverette; Scott Cranswick; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield @aoga.org; Ted Kramer; Davidson, Temple (DNR); Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Williams, Theresa; yjrosen @ak.net; Aaron Gluzman; Aaron Sorrell; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; Dale Hoffman; David Lenig; David Martin; Donna Vukich; Eric Lidji; Erik Opstad; Franger, James M (DNR); Gary Orr; Smith, Graham 0 (PCO); Greg Mattson; Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mcleod @conocophillips.com; Jim Magill; Joe Longo; King, Kathleen J (DNR); Laney Vazquez; Lara Coates; Lois Epstein; Marc Kuck; Steele, Marie C (DNR); Matt Gill; Ostrovsky, Larry (DNR sponsored); Bettis, Patricia K (DOA); Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Pollard, Susan R (LAW); Pollet, Jolie; Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Wayne Wooster; Woolf, Wendy C (DNR); William Hutto; William Van Dyke; David Johnson; Joseph Flack; Tiffany Stebbins Subject: post hearing_notice (Eliminating Fee for PTD).doc Attachments: post_hearing_notice.doc 1 Easy Peel® Labels 1 L E - t ' _ Bend along line to I • L' �� ?_� 5g6tirm Use Avery® Template 5160® 1 ed Paper ' -- expose F op -up Edge "' J j David McCaleb Penny Vadla IHS Energy Group George Vaught, Jr. 399 W. Riverview Ave. GEPS Post Office Box 13557 Soldotna, AK 99669 -7714 5333 Westheimer, Ste. 100 Denver, CO 80201 -3557 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton 40818` St. President 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94` Ct. Post Office Box 58055 Post Office Box 93330 Anchorage, AK 99515-4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Planning Department Richard Wagner Gordon Severson Post Office Box 69 Post Office Box 60868 3201 Westmar Cir. Barrow, AK 99723 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs Post Office Box 190083 Post Office Box 39309 Post Office Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 \ N _ _e_ ik .— C , - D4 g cel.Q-e) Etiquettes faciles a peler ^ ; co �p Repliez a la hachure afin de i www.avery.com .. 1 f • • OF Tit Mead Treadwell Lieutenant Governor - M 530 West 7th Ave, Suite 1700 State Capitol � ,; , Anchorage, Alaska 99501 Juneau, Alaska 99811_ �_: , 907.269.7460 269.0263 . 907.465.3520 465.5400 Fax GF - ::. LT.GOVERNOR @ALASKA.GOV WWW.LTGOV.ALASKA.GOV AL OFFICE OF THE LIEUTENANT GOVERNOR ALASKA MEMORANDUM TO: Mike Barnhill, AAC Contact Department of Administration FROM: Scott Meriwether Special Assistant 907.465.3509 DATE: March 8, 2013 RE: Filed Permanent Regulations: Alaska Oil and Gas Conservation Commission Regulations re: obsolete references to filing fee for permit to drill: 20 AAC 25.005(c)(1),(e)(2); 20 AAC 25.015(a)(1),(b)(1); 20 AAC 25.605(a) Attorney General File: JU2012200319 Regulation Filed: 3/5/2013 Effective Date: 4/4/2013 Print: 206, July 2013 cc with enclosures: Linda Miller, Department of Law Robert Pearson, Administrative Regulation Review Committee Judy Herndon, LexisNexis • JU2012200319 ORDER CERTIFYING THE CHANGES TO REGULATIONS OF ALASKA OIL AND GAS CONSERVATION COMMISSION The attached 3 pages of regulations, dealing with eliminating filing fees for an application for a permit to drill, is certified to be a correct copy of the regulation changes that the Alaska Oil and Gas Conservation Commission adopted at its January 8, 2013 public hearing, under the authority of AS 31.05.030 and AS 31.05.040 and after compliance with the Administrative Procedure Act (AS 44.62), specifically including notice under AS 44.62.190 and 44.62.200 and opportunity for public comment under AS 44.62.210. This action is not expected to require an increased appropriation. On the record, in considering public comments, the Alaska Oil and Gas Conservation Commission paid special attention to the cost to private persons of the regulatory action being taken. Although no public comments were received, the Alaska Oil and Gas Conservation Commission paid special attention to the cost to private persons of the regulatory action being taken. The regulation changes described in this order take effect on the 30th day after they have been filed by the lieutenant governor, as provided in AS 44.62.180. DATE: January 11, 2013 Anchorage, Alaska /p i Cathy P. Foerster Chair, ommissioner FILING CERTIFICATION I, Mead Treadwell, Lieutenant Governor for the State of Alaska, certify that on/14 A S at f(:004,m., I filed the attached regulations according to the pro • S 44.62.040 - 44.62.120. 0110 • a ieutenant Governor • Effective: 4erI( /' 2o13 Register: ( .241. Register ritit( 2Ui3 MISCELLANEOUS BOARDS 411 20 AAC 25.005(c)(1) is repealed: (1) repealed y/ V /2a3; 20 AAC 25.005(e)(2) is amended to read: (2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch [AND NEED NOT BE ACCOMPANIED BY THE $100 FEE]. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180; am Y / L / 2°1_3 Register 2a.) Authority: AS 31.05.030 AS 31.05.090 20 2 AC 25.015(a)(1) is amended to read: A 5. 015 ()( ) (1) submit and obtain the commission's approval of a new application for a Permit to Drill if the proposed surface location is changed, if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or 1 Register ju (7 MISCELLANEOUS BOARDS • vertically, or if the change requires a spacing exception under 20 AAC 25.055; [HOWEVER, NO ADDITIONAL FEE IS REQUIRED;] or 20 AAC 25.015(b)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill [, ACCOMPANIED BY A FEE OF $100,1 if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; or (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 1/5/2006, Register 177; am (71/ V / 2 Register 20,6) Authority: AS 31.05,030 AS 31.05.090 20 AAC 25.60 is amended to read: (a) The formula for determining a person's regulatory cost charge under AS 31.05.093 is 4.6 RCC = Vol) / VTOT * (A[ -F] -L) where +04,6444..; Latixt „ - F ” , ..e � o,� �.�Q � a �" itutuai. ,.u. hoed. ----° 0.61214 RCC = the regulatory cost charge; t,ut,d„ Vow = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, wells for which a Permit to Drill 2 Register lt.( 213 MISCELLANEOUS BOARDS has been issued under AS 31.05.090, of which the person is the operator on the first day of the fiscal year, and that have not before that day been plugged and abandoned and reported as abandoned in accordance with this chapter; t .to.ept VTOT = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, all wells for which a Permit to Drill has been issued under AS 31.05.090 and that have not before the first day of the fiscal year been plugged and abandoned and reported as abandoned in accordance with this chapter; A = the appropriation, other than from federal receipts, made for the operating costs of the commission for the fiscal year; [F = THE COMMISSION'S REASONABLE ESTIMATE OF THE TOTAL FEES TO BE COLLECTED UNDER AS 31.05.090 DURING THE FISCAL YEAR;] w L = the lapsed amount of a previous appropriation that is appropriated for the fiscal year ••, under AS 31.05.093 (d). (Eff. 6/4/2000, Register 154, Register 180; am y/ /2013 Register 206 ) Authority: AS 31.05.030 AS 31.05.093 3 *8 RECEIVED 0 0 FEB 2 5 2013 AO CC MEMORANDUM State of Alaska Department of Law TO: Cathy P. Foerster, Chair DATE: February 21, 2013 Alaska Oil and Gas Conservation Commission FILE NO.: JU2O12200319 TELEPHONE NO.: 465 -3600 FROM: Steven C. Weaver SUBJECT: Regulations re: obsolete Assistant Attorney General references to filing fee for Legislation/Regulations Section -- Juneau permit to drill (20 AAC 25.005(c)(1), (e)(2); 20 AAC 25.015(a)(1), (b)(1); 20 AAC 25.605(a)) Under AS 44.62.060, we have reviewed the attached regulations changes by the Alaska Oil and Gas Conservation Commission, and approve the changes for filing by the lieutenant governor. I have reviewed this project under a specific delegation dated February 20, 2013 from the Regulations Attorney. A duplicate original of this memorandum is being furnished to the lieutenant governor, along with the three pages of regulations and the related documents. You might wish to contact the lieutenant governor's office to confirm the filing date and effective date of the attached regulation changes. The November 25, 2012 public notice and the January 11, 2013 certification order both state that this action is not expected to require an increased appropriation. Therefore, a fiscal note under AS 44.62.195 is not required. In accordance with AS 44.62.125(b)(6), some corrections have been made in the regulations, as shown on the attached copy. scw cc w /enc: Mike Barnhill, Deputy Commissioner & Regulations Contact Department of Administration Jody Colombie Alaska Oil & Gas Conservation Commission Thomas Ballantine Sr. Assistant Attorney General Oil, Gas & Mining Section -- Anchorage 4 1 • MEMORANDUM State of Alaska Department of Law TO: Hon. Mead Treadwell DATE: February 21, 2013 Lieutenant Governor FILE NO.: JU2012200319 '--D(( , p TELEPHONE NO.: 465 -3600 FROM: Steven C. Weaver ' SUBJECT: Regulations re: obsolete Assistant Attorney General references to filing fee for Legislation/Regulations Section -- Juneau permit to drill (20 AAC 25.005(c)(1), (e)(2); 20 AAC 25.015(a)(1), (b)(1); 20 AAC 25.605(a)) We have reviewed the attached regulations from the Alaska Oil and Gas Conservation Commission. I have reviewed this project under a specific delegation dated February 20, 2013 from the Regulations Attorney. A duplicate of this memorandum is being furnished to the commission chair, Cathy P. Foerster, along with a copy of the regulations. The Department of Law has reviewed the attached regulations against the statutory standards of the Administrative Procedure Act. Based upon our review, we find no legal problems. This memorandum and the attached duplicate memorandum dated February 21, 2013 constitute the written statement of approval under AS 44.62.060(b) and (c) that authorizes your office to file the attached regulations. The regulation changes were adopted by the Alaska Oil and Gas Conservation Commission after the close of the public comment period. The regulations delete obsolete references to a filing fee for a permit to drill: a fee repealed as part of amendments to AS 31.05.090 made under sec. 12, ch. 54, SLA 2007. The certification order for the regulations states that this action is not expected to require an increased appropriation. Therefore, a fiscal note under AS 44.62.195 is not required. We have made a few technical corrections to conform the regulations with the drafting manual under AS 44.62.060 and 44.62.125. The corrections are shown on the attached copy of the regulations. scw cc w /enc: Cathy P. Foerster, Chair Alaska Oil & Gas Conservation Commission 0 • Register 2013 MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) repealed / / ; 20 AAC 25.005(e)(2) is amended to read: (2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch [AND NEED NOT BE ACCOMPANIED BY THE $100 FEE]. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.015(a)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill if the proposed surface location is changed, if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or 1 • • Register 2013 MISCELLANEOUS BOARDS vertically, or if the change requires a spacing exception under 20 AAC 25.055; [HOWEVER, NO ADDITIONAL FEE IS REQUIRED;] or 20 AAC 25.015(b)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill [, ACCOMPANIED BY A FEE OF $100] if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; or (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 1/5/2006, Register 177; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.60 is amended to read: (a) The formula for determining a person's regulatory cost charge under AS 31.05.093 is uo Prr2.2- RCC = VOp / VTOT * ( A[ -F] -L) where . ;,.y.6A. ; xZ "- " _A:,, .: ,wa Kee uh &ed A RCC = the regulatory cost charge; s.t., Vol = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, wells for which a Permit to Drill 2 • Register , 2013 MISCELLANEOUS BOARDS has been issued under AS 31.05.090, of which the person is the operator on the first day of the fiscal year, and that have not before that day been plugged and abandoned and reported as abandoned in accordance with this chapter; boM VTOT = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, all wells for which a Permit to Drill has been issued under AS 31.05.090 and that have not before the first day of the fiscal year been plugged and abandoned and reported as abandoned in accordance with this chapter; ub .lam(. A = the appropriation, other than from federal receipts, made for the operating costs of the commission for the fiscal year; [F = THE COMMISSION'S REASONABLE ESTIMATE OF THE TOTAL FEES TO BE COLLECTED UNDER AS 31.05.090 DURING THE FISCAL YEAR;] beol L = the lapsed amount of a previous appropriation that is appropriated for the fiscal year under AS 31.05.093 (d). (Eff. 6/4/2000, Register 154, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.093 3 410 RECEIVED FEB 2 5 2013 AOGCC MEMORANDUM State of Alaska Department of Law TO: Cathy P. Foerster, Chair DATE: February 21, 2013 Alaska Oil and Gas Conservation Commission FILE NO.: JU2012200319 TELEPHONE NO.: 465-3600 FROM: Steven C. Weaver li e SUBJECT: Regulations re: obsolete Assistant Attorney General references to filing fee for Legislation/Regulations Section -- Juneau permit to drill (20 AAC 25.005(c)(1), (e)(2); 20 AAC 25.015(a)(1), (b)(1); 20 AAC 25.605(a)) Under AS 44.62.060, we have reviewed the attached regulations changes by the Alaska Oil and Gas Conservation Commission, and approve the changes for filing by the lieutenant governor. I have reviewed this project under a specific delegation dated February 20, 2013 from the Regulations Attorney. A duplicate original of this memorandum is being furnished to the lieutenant governor, along with the three pages of regulations and the related documents. You might wish to contact the lieutenant governor's office to confirm the filing date and effective date of the attached regulation changes. The November 25, 2012 public notice and the January 11, 2013 certification order both state that this action is not expected to require an increased appropriation. Therefore, a fiscal note under AS 44.62.195 is not required. In accordance with AS 44.62.125(b)(6), some corrections have been made in the regulations, as shown on the attached copy. scw cc w /enc: Mike Barnhill, Deputy Commissioner & Regulations Contact Department of Administration Jody Colombie Alaska Oil & Gas Conservation Commission Thomas Ballantine Sr. Assistant Attorney General Oil, Gas & Mining Section -- Anchorage Register , 2013 MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) repealed / / ; 20 AAC 25.005(e)(2) is amended to read: (2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch [AND NEED NOT BE ACCOMPANIED BY THE $100 FEE]. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.015(a)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill if the proposed surface location is changed, if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or 1 • Register 2013 MISCELLANEOUS BOARDS vertically, or if the change requires a spacing exception under 20 AAC 25.055; [HOWEVER, NO ADDITIONAL FEE IS REQUIRED;] or 20 AAC 25.015(b)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill [, ACCOMPANIED BY A FEE OF $100,1 if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; or (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 1/5/2006, Register 177; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.60 is amended to read: (a) The formula for determining a person's regulatory cost charge under AS 31.05.093 is RCC = Vol) / VTOT * (A[ -F] -L) where " _AA uAJte IA,e heat RCC = the regulatory cost charge; Vol) = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, wells for which a Permit to Drill 2 • 411 Register 2013 MISCELLANEOUS BOARDS has been issued under AS 31.05.090, of which the person is the operator on the first day of the fiscal year, and that have not before that day been plugged and abandoned and reported as abandoned in accordance with this chapter; Van = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, all wells for which a Permit to Drill has been issued under AS 31.05.090 and that have not before the first day of the fiscal gg ear been plugged and abandoned and reported as abandoned in accordance with this Y p chapter; A = the appropriation, other than from federal receipts, made for the operating costs of the commission for the fiscal year; [F = THE COMMISSION'S REASONABLE ESTIMATE OF THE TOTAL FEES TO BE COLLECTED UNDER AS 31.05.090 DURING THE FISCAL YEAR;] L = the lapsed amount of a previous appropriation that is appropriated for the fiscal year under AS 31.05.093 (d). (Eff. 6/4/2000, Register 154, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.093 3 47 �w \��\ j��; THE STATE Alaska Oil and Gas ,[ ALAS} A Conservation Commission ~ ` ,,„\;,,,,,,,, 333 West Seventh Avenue p P Anchorage, Alaska 99501 -3572 F ALA`3Y' Main: 907.279.1433 Fax: 907.276.7542 Memorandum DATE: January 11, 2013 TO: Debra Behr Regulations Attorney FROM: Cathy P. Foerster Chair, Commissioner SUBJECT: Request for Legal Review Regulations Project on eliminating filing fees for an application for a permit to drill 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.025.015(b)(1) We are requesting legal review and approval of the attached final permanent regulations on eliminating filing fees for an application for a permit to drill, which were adopted by the Alaska Oil and Gas Conservation Commission. Enclosed are the following documents: 1. the original and one copy of the fmal regulations for the Department of Law's use; 2. one copy of the fmal regulations and the public notice for governor's office use; 3. the original of the signed and dated adoption document; 4. the original signed and dated certification order; 5. the original of the public notice; 6. the original of the additional regulations notice information form distributed with the notice; 7. the original of the publisher's affidavit of publication; 8. the original of the affidavit of notice; 9. the original of the affidavit of oral hearing; 10. the original of the affidavit of agency record of public comment; 11. the transcript from the January 8, 2013 hearing; 12. staff affidavit for the transcript pages; We have worked with Assistant Attorney General Thomas Ballantine on the project. Upon completion of your review, please forward the regulations to the lieutenant governor for filing. • i r 2 Register MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) repealed / / ; 20 AAC 25.005(e)(2) is amended to read: (2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch [AND NEED NOT BE ACCOMPANIED BY THE $100 FEE]: (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.015(a)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill if the proposed surface location is changed, if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or 1 • Register 2013 MISCELLANEOUS BOARDS vertically, or if the change requires a spacing exception under 20 AAC 25.055; [HOWEVER, NO ADDITIONAL FEE IS REQUIRED;] or 20 AAC 25.015(b)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill [, ACCOMPANIED BY A FEE OF $100,] if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; or (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 1/5/2006, Register 177; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.605 is amended to read: (a) The formula for determining a person's regulatory cost charge under AS 31.05.093 is RCC = Vop / VTOT * ( A[-F) -L) where RCC = the regulatory cost charge; Vol) = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, wells for which a Permit to Drill 2 • • Register , 2013 MISCELLANEOUS BOARDS has been issued under AS 31.05.090, of which the person is the operator on the first day of the fiscal year, and that have not before that day been plugged and abandoned and reported as abandoned in accordance with this chapter; VTOT = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, all wells for which a Permit to Drill has been issued under AS 31.05.090 and that have not before the first day of the fiscal year been plugged and abandoned and reported as abandoned in accordance with this chapter; A = the appropriation, other than from federal receipts, made for the operating costs of the commission for the fiscal year; [F = THE COMMISSION'S REASONABLE ESTIMATE OF THE TOTAL FEES TO BE COLLECTED UNDER AS 31.05.090 DURING THE FISCAL YEAR;] L = the lapsed amount of a previous appropriation that is appropriated for the fiscal year under AS 31.05.093 (d). (Eff. 6/4/2000, Register 154, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.093 3 Register 2013 MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) repealed / / ; 20 AAC 25.005(e)(2) is amended to read: (2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch [AND NEED NOT BE ACCOMPANIED BY THE $100 FEE]. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.015(a)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill if the proposed surface location is changed, if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or 1 Register 2013 . MISCELLANEOUS BOARDS vertically, or if the change requires a spacing exception under 20 AAC 25.055; [HOWEVER, NO ADDITIONAL FEE IS REQUIRED;] or 20 AAC 25.015(b)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill [, ACCOMPANIED BY A FEE OF $100,] if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; or (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 1/5/2006, Register 177; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.605 is amended to read: (a) The formula for determining a person's regulatory cost charge under AS 31.05.093 is RCC = Vop / VTOT * (A[ -F] -L) where RCC = the regulatory cost charge; Vop = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, wells for which a Permit to Drill 2 Register 2013 MISCELLANEOUS BOARDS the person is the operator on the first day of the issued under AS 31.05.090, of which th p Y has been s p fiscal year, and that have not before that day been plugged and abandoned and reported as abandoned in accordance with this chapter; VTOT = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, all wells for which a Permit to Drill has been issued under AS 31.05.090 and that have not before the first day of the fiscal year been plugged and abandoned and reported as abandoned in accordance with this chapter; A = the appropriation, other than from federal receipts, made for the operating costs of the commission for the fiscal year; IF = THE COMMISSION'S REASONABLE ESTIMATE OF THE TOTAL FEES TO BE COLLECTED UNDER AS 31.05.090 DURING THE FISCAL YEAR;] L = the lapsed amount of a previous appropriation that is appropriated for the fiscal year under AS 31.05.093 (d). (Eff. 6/4/2000, Register 154, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.093 3 Register 2013 MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) repealed / / ; 20 AAC 25.005(e)(2) is amended to read: (2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch [AND NEED NOT BE ACCOMPANIED BY THE $100 FEE]. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.015(a)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill if the proposed surface location is changed, if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or 1 • Register 2013 . MISCELLANEOUS BOARDS vertically, or if the change requires a spacing exception under 20 AAC 25.055; [HOWEVER, NO ADDITIONAL FEE IS REQUIRED;] or 20 AAC 25.015(b)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill [, ACCOMPANIED BY A FEE OF $100,1 if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; or (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 1/5/2006, Register 177; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.605 is amended to read: (a) The formula for determining a person's regulatory cost charge under AS 31.05.093 is RCC = Vop / VTOT * ( - - where RCC = the regulatory cost charge; VoP = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, wells for which a Permit to Drill 2 Register er , 2013 MISCELLANEOUS BOARDS • has been issued under AS 31.05.090, of which the person is the operator on the first day of the fiscal year, and that have not before that day been plugged and abandoned and reported as abandoned in accordance with this chapter; VTOT = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, all wells for which a Permit to Drill has been issued under AS 31.05.090 and that have not before the first day of the fiscal year been plugged and abandoned and reported as abandoned in accordance with this chapter; A = the appropriation, other than from federal receipts, made for the operating costs of the commission for the fiscal year; [F = THE COMMISSION'S REASONABLE ESTIMATE OF THE TOTAL FEES TO BE COLLECTED UNDER AS 31.05.090 DURING THE FISCAL YEAR;] L = the lapsed amount of a previous appropriation that is appropriated for the fiscal year under AS 31.05.093 (d). (Eff. 6/4/2000, Register 154, Register 180; am //, Register ) Authority: AS 31.05.030 AS 31.05.093 3 • 410 NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION "BRIEF DESCRIPTION: The Alaska Oil and Gas Conservation Commission proposes to eliminate the filing fee that is currently charged, by regulation, to persons who apply for a Permit to Drill." The Alaska Oil and Gas Conservation Commission proposes to adopt changes in Title 20, Chapter 25 of the Alaska Administrative Code. Specifically, the Commission proposes to repeal 20 AAC 25.005(c)(1) to eliminate the filing fee required to accompany an application for a Permit to Drill. In addition, the Commission proposes to amend the language of 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a) in order to delete all references to the filing fee required to accompany an application for a Permit to Drill. You may comment on the proposed regulation change, including the potential costs to private persons of complying with the proposed change, by submitting written comments to Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Additionally, the Alaska Oil and Gas Conservation Commission will accept comments by facsimile at (907) 276 -7542 and by electronic mail at Alaska Oil and Gas Conservation Commission. The comments must be received no later than 4:30 p.m. on January 8, 2013. Oral or written comments also may be submitted at a hearing to be held on January 8, 2013, at 333 West 7 Avenue, Anchorage, Alaska 99501. The hearing will be held at 9:00 a.m. and might be extended 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 needs a special accommodation in order to participate in this process, please contact Jody Colombie at (907) 793 -1221 no later than January 4, 2013 to ensure that any necessary accommodation can be provided. For a copy of the proposed regulation change, contact Jody Colombie at (907) 793 -1221 or go to www.aogcc.alaska.gov. After the public comment period ends, the Alaska Oil and Gas Conservation Commission will either adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of any final regulation may be different from the proposed regulation. You should comment during the time allowed if your interests could be affected. Statutory Authority: AS 31.05.030 and AS 31.05.090 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.090 Fiscal Information: The proposed regulation change is not expected to require an increased appropriation. DATE: November November 19, 2012 Cathy P,oerster, Chair, Commissioner • • ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission, 2. General subject of regulation: eliminating the fee required to accompany an application for a Permit to Drill as well as any reference in the regulations to such fee. 3. Citation of regulation: 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a). 4. Reason for the proposed action: compliance with revised state statute. 5. Appropriation/Allocation: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero, p g 7. The name of the contact person for the regulations: Name Cathy P. Foerster Title Chair, Commissioner Address 333 West 7 Avenue, Anchorage, Alaska 99501 Telephone (907) 793 -1221 E -mail address is jody.colombie @alaska.gov 8. The origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 19, 2012 Prepared by: ,I .. 1 l' , :... . .1 , 4 J. O to ;1 • ie Special Staff Assistant (907) 793-1221 • • STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF NOTICE OF PROPOSED ADOPTION OF REGULATIONS AND FURNISHING OF ADDITIONAL INFORMATION I, Jody J. Colombie, Special Assistant to the Commission, of Alaska Oil and Gas Conservation Commission, being sworn, state the following: As required by AS 44.62.190, notice of the proposed adoption of changes to 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.025.015(b)(1), Eliminating Filing Fees for an Application for Permit to Drill has been given by being (1) published in a newspaper or trade publication; (2) furnished to interested persons; (3) furnished to appropriate state officials; (4) furnished to the Department of Law, along with a copy of the proposed regulations; (5) electronically transmitted to incumbent State of Alaska legislators; (6) furnished to the Legislative Affairs Agency, Legislative Legal and Research Services; (7) posted on the Alaska Online Public Notice System as required by AS 44.62.175(a)(1) and (b) and 44.62.190(a)(1); (8) furnished electronically, along with a copy of the proposed regulations, to the Legislative Affairs Agency, the chair of the Resources Committee of the Alaska Senate and House of Representatives, the Administrative Regulation Review Committee, and the legislative council. As required by AS 44.62.190(d), additional regulations notice information regarding the proposed adoption of the regulation changes described above has been furnished to interested persons and those in (5) and (6) of the list above. The additional regulations notice information also has been posted on the Alaska Online Public Notice System. DATE: January 11, 2013 Anchorage Jo•k, • C lom e, pedal Assistant to the Commission SUBSCRIBED AND SWORN TO before me this 1 lth day of January, 2013. otary Public ird or the State of Alaska My commission expires: 11/11/2014. • ORDER CERTIFYING THE CHANGES TO REGULATIONS OF ALASKA OIL AND GAS CONSERVATION COMMISSION The attached 3 pages of regulations, dealing with eliminating filing fees for an application for a permit to drill, is certified to be a correct copy of the regulation changes that the Alaska Oil and Gas Conservation Commission adopted at its January 8, 2013 public hearing, under the authority of AS 31.05.030 and AS 31.05.040 and after compliance with the Administrative Procedure Act (AS 44.62), specifically including notice under AS 44.62.190 and 44.62.200 and opportunity for public comment under AS 44.62.210. This action is not expected to require an increased appropriation. 1 On the record, in considering public comments, the Alaska Oil and Gas Conservation Commission p aid special attention to the cost to private persons of the regulatory action being taken. Although no public comments were received, the Alaska Oil and Gas Conservation Commission paid special attention to the cost to private persons of the regulatory action being taken. The regulation changes described in this order take effect on the 30th day after they have been filed by the lieutenant governor, as provided in AS 44.62.180. DATE: January 11, 2013 Anchorage, Alaska Cathy . Foerster Chair, ommissioner FILING CERTIFICATION I, Mead Treadwell, Lieutenant Governor for the State of Alaska, certify that on , at .m., I filed the attached regulations according to the provisions of AS 44.62.040 - 44.62.120. Lieutenant Governor Effective: Register: NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION "BRIEF DESCRIPTION: The Alaska Oil and Gas Conservation Commission proposes to eliminate the filing fee that is currently charged, by regulation, to persons who apply for a Permit to Drill." The Alaska Oil and Gas Conservation Commission proposes to adopt changes in Title 20, Chapter 25 of the Alaska Administrative Code. Specifically, the Commission proposes to repeal 20 AAC 25.005(c)(1) to eliminate the filing fee required to accompany an application for a Permit to Drill. In addition, the Commission proposes to amend the language of 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a) in order to delete all references to the filing fee required to accompany an application for a Permit to Drill. You may comment on the proposed regulation change, including the potential costs to private persons of complying with the proposed change, by submitting written comments to Alaska Oil and Gas Conservation Commission at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Additionally, the Alaska Oil and Gas Conservation Commission will accept comments by facsimile at (907) 276 -7542 and by electronic mail at Alaska Oil and Gas Conservation Commission. The comments must be received no later than 4:30 p.m. on January 8, 2013. Oral or written comments also may be submitted at a hearing to be held on January 8, 2013, at 333 West 7 Avenue, Anchorage, Alaska 99501. The hearing will be held at 9:00 a.m. and might be extended 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 needs a special accommodation in order to participate in this process, please contact Jody Colombie at (907) 793 -1221 no later than January 4, 2013 to ensure that any necessary accommodation can be provided. For a copy of the proposed regulation change, contact Jody Colombie at (907) 793 -1221 or go to www. ao gc c. al aska. gov. After the public comment period ends, the Alaska Oil and Gas Conservation Commission will either adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of any final regulation may be different from the proposed regulation. You should comment during the time allowed if your interests could be affected. Statutory Authority: AS 31.05.030 and AS 31.05.090 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.090 Fiscal Information: The proposed regulation change is not expected to require an increased appropriation. 1 DATE: November 19, 2012 ■4( , A Cathy P. ' oerster, Chair, Commissioner ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulation: eliminating the fee required to accompany an application for a Permit to Drill as well as any reference in the regulations to such fee. 3. Citation of regulation: 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a). 4. Reason for the proposed action: compliance with revised state statute. 5. Appropriation/Allocation: 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: Name Cathy P. Foerster Title Chair, Commissioner Address 333 West 7 Avenue, Anchorage, Alaska 99501 Telephone (907) 793 -1221 E -mail address is jody.colombie @alaska.gov 8. The origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 19, 2012 Prepared by: ,e •. , . 1 l' Jolt J. et lo foie Special Staff Assistant (907) 793 -1221 • • RECEIVED NOV 2 8 2.012 STATE OF ALASKA NOTICE TO PUBLISHER AOCC ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO , CERTIFIED AO-02-3-14-024 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7` Avenue. Suite 100 Jody Colombie November 15. 2012 0 Anchorage. AK 99501 PHONE PCN M (907) 793 -1221 DATES ADVERTISEMENT REQUIRED: Alaska Journal of Commerce ASAP 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 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 Alaska ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISIN( ORDER NUMBER. Third Judicial division. A CERTIFIED COP : OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. Tracy Allison who, being first duly sworn, according to law, says that he /she is the Circulation Manager of the Alaska Journal of Commerce Published at Anchorage in said division Third Judicial and state of Alaska and that the advertisement, of which the annexed is a true copy, was published in said publication on the Twenty -fifth day of November 2012, and thereafter for consecutive days, the last publication appearing on the Twenty -fifth day of November 2012, and that the rate charged thereon is not in excess of the to harged iarivate individuals. Subscribed and sworn to before me This 26th day of November 2012, Notary public for state of My commission expires Notary Public State of Alaska My Commission Expires Jun 14, 2016 THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION "BRIEF DESCRIPTION: The Alaska Oil and Gas Conservation Commission proposes to eliminate the filing fee that is currently charged, by regula- tion, to persons who apply for a Per- mit to Drill." The Alaska Oil and Gas Conservation Commission proposes to adopt changes in Title 20, Chapter 25 of the Alaska Administrative Code. Specifi- cally, the Commission proposes to re- peal 20 AAC 25.005(c)(1) to eliminate the filing fee required to accompany an application for a Permit to Drill. In addition, the Commission proposes to amend the language of 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a) in order to delete all refer- ences to the filing fee required to ac- company an application for a Permit to Drill. You may comment on the proposed regulation change, including the po- tential costs to private persons of complying with the proposed change, by submitting written comments to Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Additionally, the Alaska Oil and Gas Conservation Commission will accept comments by facsimile at (907) 276 -7542 and by electronic mail at Alaska Oil and Gas Conservation Commission. The comments must be received no later than 4:30 p.m. on January 8, 2013. Oral or written comments also may be submitted at a hearing to be held on January 8, 2013, at 333 West 7th Avenue, Anchorage, Alaska 99501. The hearing will be held at 9:00 a.m. and might be extended to accommo- date those present before 9:30 a.m. who did not have an opportunity to comment. If you are a person with a disability who needs a special accommodation in order to participate in this process, please contact Jody Colombie at (907) 793 -1221 no later than January 4, 2013 to ensure that any necessary accommodation can be provided. For a copy of the proposed regulation change, contact Jody Colombie at (907) 793-1221 or go to www.aogcc.alaska.gov. After the public comment period i ends, the Alaska 011 and Gas Conser- yation Commission will either adopt these or other provisions dealing with the same subject, witifeut further no- tice, or decide to take no action on them. The language of any final regu- lation may be different from the pro- posed regulation. You should com- ment during the time allowed if your interests could be affected. Statutory Authority: AS 31.05.030 and AS 31.05.090 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.090 Fiscal Information: The proposed regulation change is not expected to require an increased appropriation. DATE: November 15. 2012 By: /s/Cathy P. Foerster, Chair, Commissioner ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulation: eliminating the fee required to accom- pany an application for a Permit to Drill as well as any reference in the regulations to such fee. 3. Citation of regulation: 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a). 4. Reason for the proposed action: compliance with revised state statute. 5. Appropriation /Allocation: Alaska Oil and Gas Conservation Commis- sion. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations: Name Cathy P. Foerster Title Chair, Commissioner Address 333 West 7th Avenue, Anchorage, Alaska 99501 Telephone (907) 793 -1221 E -mail address is lody.colombie ©alaska.gov 8. The origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 15. 2012 Prepared by: Jody J. Colombie Special Staff Assistant (907) 793-1221 Pub: 11/25/2012. Ad#10169760 • • STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF COMMISSION ACTION I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: The attached motion, dealing with eliminating filing fees for an application for a permit to drill regulation changes, was passed by the Alaska Oil and Gas Conservation Commission during its January 8, 2013 public hearing. Date: January 11, 2013 Anchorage Jay J.■ ol',mbie Special Assistant to the Commission SUBSCRIBED AND SWORN TO before me this 11th day of January 2013. o . Public in a • • the State of Alaska My commission expires: 11/11/2014 • S STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF ORAL HEARING I, Cathy P. Foerster, Chair, Commissioner of the Alaska Oil and Gas Conservation Commission_being sworn, state the following: g On January 8, 2013, at 9:00 a.m. at 333 West Seventh Avenue, Anchorage Alaska 99501, I presided over a public hearing held under AS 44.62.210 for the purpose of taking testimony in connection with the adoption of changes to 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.025.015(b)(1), eliminating filing fees for an application for a permit to drill. DATE: January 11, 2013 Anchorage, Alaska Cathy P. oerster Chair, Commissioner SUBSCRIBED AND SWORN TO before me this 11` day of January, 2013. j ► .. Public in . fTfor the State of Alaska My commission expires: 11/11/14. • ALASKA OIL AND GAS CONSERVATION COMMISSION HEARING January 8, 2013 Excerpt From Unapproved Minutes Commissioner John K. Norman moved and Commissioner Cathy P. Foerster seconded the following motion: "I move to adopt 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.025.015(b)(1)." The motion carried unanimously. 46 • • 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 Before Commissioners: Cathy Foerster, Chair 3 Daniel T. Seamount 4 John K. Norman 5 In the Matter of Proposed Regulations ) 6 Pertaining to the Elimination of the ) 7 Filing Fee Required to Accompany an ) 8 Application for a Permit to Drill. 9 10 ALASKA OIL and GAS CONSERVATION COMMISSION 11 Anchorage, Alaska 12 January 8, 2013 13 9:00 o'clock a.m. 14 VOLUME I 15 PUBLIC HEARING 16 BEFORE: Cathy Foerster, Chair 17 John K. Norman • 1 TABLE OF CONTENTS 2 Opening remarks by Chair Foerster 03 2 • • 1 P R O C E E D I N G S 2 (On record - 9:02 a.m.) 3 CHAIR FOERSTER: Good morning. I'll call this 4 hearing to order. This is a public hearing to consider 5 proposed regulations pertaining to the elimination of 6 the filing fee required to accompany an application for 7 a permit to drill. In 2007 the Legislature enacted 8 statutory amendments to AS 31.05, one of those 9 amendments eliminated the statutory filing fee required 10 to accompany permit to drill applications. AOGCC is 11 repealing this regulation to conform the regulation to 12 the statute as amended. 13 This hearing is being held on the morning on 14 January 8th, 2013 at 9:00 a.m. The location is the 15 Commission's offices at 333 West Seventh Avenue, 16 Anchorage, Alaska. 17 I'll first introduce the bench. To my right is 18 Commissioner John Norman and Commissioner Seamount is 19 at the dentist. I'm Cathy Foerster, the Chair. 20 Computer Matrix will be recording these 21 proceedings. Upon completion and preparation of the 22 transcript persons desiring a copy will be able to 23 obtain it by contacting Computer Matrix or 24 alternatively by contacting Jody Colombie, the 25 Commission's Special Assistant. 3 • • 1 The Commissioners would like to remind anyone 2 who testifies to speak into the microphone so that 3 persons in the rear of the room can hear and so the 4 court reporter can get a clear recording. 5 Specifically the Alaska Oil & Gas Conservation 6 Commission proposes to adopt changes in Title 20, 7 Chapter 25 of the Alaska Administrative Code. The 8 Commission proposes to repeal 20 AAC 25.005(c)(1) to 9 eliminate the filing fee required to accompany an 10 application for a permit to drill. In addition the 11 Commission proposes to amend the language of 20 AAC 12 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) 13 and 20 AAC 25.605(a), in order to delete all references 14 to the filing fee required to accompany an application 15 for permit to drill. This hearing is being held in 16 accordance with AS 44.62 and 20 AAC 25.540 of the 17 Alaska Administrative Code. 18 If you have a question directed to someone 19 testifying we ask that you provide your question in 20 writing along with your name and that of the witness to 21 the Commission's Special Assistant, Jody Colombie, 22 float wave. Before the end of the hearing the 23 Commission will review these questions and ask those it 24 believes will be helpful in eliciting relevant 25 information. 4 • • 1 The notice of this hearing was published in the 2 Alaska Journal of Commerce on November 25th, 2012, It 3 was also posted on the state of Alaska online notices 4 website as well as the AOGCC's own website on November 5 15th, 2012. 6 The AOGCC has received no written comments. 7 When considering the factual, substantive and a s 8 other relevant matters the agency shall pay special 9 attention to the cost to private persons of the 10 proposed regulation actions. 11 Commissioner John Norman will provide comments 12 for AOGCC. 13 COMMISSIONER NORMAN: Thank you, Madam Chair. 14 As you outlined the statutory basis for the regulation 15 was repealed some years ago and because of that the 16 action that is before us today is largely a ministerial 17 action. When the underlying statutory authority is 18 repealed that leaves the regulation hanging in the air 19 without statutory foundation and consequently what 20 we're doing is simply following through as you said to 21 confirm the regulation to the statute. I will place in 22 the record a bit of background for any persons 23 reviewing the record in the future of the process the 24 Commission went through when we took the step of 25 recommending to the Legislature the elimination of the 5 • 1 fee for permit to drill. 2 For decades beginning with statehood Alaska law 3 required each application for a permit to drill to be 4 accompanied by a filing fee. Originally that fee was 5 $50 and then later up to $100. The $100 fee had 6 remained in effect for approximately 37 years until the 7 time that the Commission undertook a comprehensive 8 review of all the statutory provisions in Title 31. 9 This was one of the sections reviewed by the 10 Commission. We reviewed it and determined that that 11 fee had become simply what you could characterize as a 12 nuisance fee, it contributed very little to the 13 Commission's overall budget. Our determination was it 14 contributed between 20 to $25,000 per year towards the 15 Commission's multi - million dollar annual budget and 16 additionally it did not begin to approximate the actual 17 cost of processing an application for a permit to 18 drill. 19 With that in mind the Commission reviewed 20 options for addressing this situation. One option, of 21 course, would have been to increase the fee to bring it 22 more in line with the Commission's actual costs. This 23 would have entailed a significant increase in the 24 required fee. The Commission considered this and one 25 factor that caused us to rule this out was the 6 • • 1 realization that most of the operators that apply for 2 permits to drill already pay the Regulatory Cost Charge 3 to the Commission. The fee paid for an application for 4 a permit to drill is a direct offset and a year end 5 deduction to the Regulatory Cost Charge so in effect 6 any operator paying a permit fee would in effect have 7 that credited as a reduction of the Regulatory Cost 8 Charge and in effect the fee paid would be going 9 through the revolving door and there would be no net 10 benefit to anyone. We calculated that approximately 80 11 percent of the fees would result in no net benefit to 12 anyone. Of the remaining fees which at most would be 13 about 20 percent, many of these related to companies 14 that are involved in exploration and there was concern 15 on the part of the Commissioners that by setting the 16 fee at a substantially higher rate it could adversely 17 affect exploration in the state of Alaska. This was 18 all discussed and aired at public hearings including 19 discussions with the regulated industry. Everyone 20 agreed that it would be more beneficial to encourage 21 more exploration because to the extent that 22 explorations are successful and additional production 23 is established, that allows more companies to begin 24 paying the Regulatory Cost Charge and share that cost 25 and that is the long -term objective of most operators 7 • . 1 rather than simply having companies pay a higher permit 2 fee. 3 So that led us then to consider other options 4 and it led us then to what was the most desirable 5 option which was simply to eliminate the fee entirely. 6 One thing that underscored this option for us was the 7 fact that the Commission is increasingly moving in the 8 direction of electronic commerce and the requirement a 9 for a monetary payment to accompany p y an application is a 10 complicating feature where most of the other filings in 11 the future we're hoping will be able to be handled 12 electronically. It is possible that electronic 13 transfers of money could be also handled, but there are 14 some complications with that and since the fee 15 generally does not contribute substantially to the 16 Commission's budget anyway we opted finally to 17 recommend to the Legislature that the fee be 18 eliminated. The Legislature considered all this, this 19 was then discussed in the course of legislative 20 hearings and that led to the repeal of the underlying 21 statute and with that that brings us here today to 22 finish the process out with repeal of the regulation. 23 And with that I will move the adoption of this 24 repealer regulation. 25 CHAIR FOERSTER: And I'll second that motion. 8 • • 1 Since there's nobody else here to vote, the motion 2 passes. 3 And since this was the only item of business 4 noticed for this hearing it's appropriate to go ahead 5 and adjourn. We're adjourned. 6 (Adjourned - 9:12 a.m.) 7 (END OF PROCEEDINGS) 9 • • 1 TRANSCRIBER'S CERTIFICATE 2 I, Salena A. Hile, hereby certify that the 3 foregoing pages numbered 02 through 10 are a true, 4 accurate, and complete transcript of proceedings in the 5 above referenced matter - filing fee transcribed under 6 my direction from a copy of an electronic sound 7 recording to the best of our knowledge and ability. 8 9 Salena A. Hile, Date , Transcriber 11 10 • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Regulations Changes to PTD Fee January 8, 2013 at 9:00 a.m. NAME AFFILIATION PHONE # TESTIFY (Yes or No) C / ,VAAK ,\A ) 1 1 4 C,G CC 4 • • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO-02-3-14-024 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. November 15, 2012 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: o Alaska Journal of Commerce November 18, 2012 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement SEE ATTACHED Regulations PTD SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ 1 12 02140100 73451 2 REQUISITIONE BY: DIVISION APPROVAL: • 02 -902 Rev. 3/94 v Publisher/Original inal Co ies: Department Fiscal, Department, Receiving � ) � P P P AO.FRM • • NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission proposes to adopt changes in Title 20, Chapter 25 of the Alaska Administrative Code. Specifically, the Commission proposes to repeal 20 AAC 25.005(c)(1) to eliminate the filing fee required to accompany an application for a Permit to Drill. In addition, the Commission proposes to amend the language of 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a) in order to delete all references to the filing fee required to accompany an application for a Permit to Drill. You may comment on the proposed regulation change, including the potential costs to private persons of complying with the proposed change, by submitting written comments to Alaska Oil and Gas Conservation Commission at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Additionally, the Alaska Oil and Gas Conservation Commission will accept comments by facsimile at (907) 276 -7542 and by electronic mail at Alaska Oil and Gas Conservation Commission. The comments must be received no later than 4:30 p.m. on January 8, 2013. Oral or written comments also may be submitted at a hearing to be held on January 8, 2013, at 333 West 7 Avenue, Anchorage, Alaska 99501. The hearing will be held at 9:00 a.m. and might be extended 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 needs a special accommodation in order to participate in this process, please contact Jody Colombie at (907) 793 -1221 no later than January 4, 2013 to ensure that any necessary accommodation can be provided. For a copy of the proposed regulation change, contact Jody Colombie at (907) 793 -1221 or go to www.aogcc.alaska.gov. After the public comment period ends, the Alaska Oil and Gas Conservation Commission will either adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of any final regulation may be different from the proposed regulation. You should comment during the time allowed if your interests could be affected. Statutory Authority: AS 31.05.030 and AS 31.05.090 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.090 Fiscal Information: The proposed regulation change is not expected to require an increased appropriation. DATE: November 15, 2012 Cathy P. "oerster, Chair, Commissioner • • • ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulation: eliminating the fee required to accompany an application for a Permit to Drill as well as any reference in the regulations to such fee. 3. Citation of regulation: 20 AAC 25.005(c)(1), 20 AAC 25.005(e)(2), 20 AAC 25.015(a)(1), 20 AAC 25.015(b)(1) and 20 AAC 25.605(a). 4. Reason for the proposed action: compliance with revised state statute. 5. Appropriation/Allocation: 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: Name Cathy P. Foerster Title Chair, Commissioner Address 333 West 7 Avenue, Anchorage, Alaska 99501 Telephone (907) 793 -1221 E -mail address is jody.colombie @alaska.gov 8. The origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. 9. Date: November 15, 2012 Prepared by: 46 � ° A Jfidy J. C�'lo -ie Special M aff Assistant (907) 793 -1221 • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02-3-14-024 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE .E BOTTOM FOR INVOICE ADDRESS AGENCY CONTACT DATE OF A.O. F AOGCC 7th Jodv Colomhie November 15. 2012 R 333 West 7 Avenue. Suite 100 ° Anchorage. HONE PCN e. AK 99501 (9071 793 -1221 M DATES ADVERTISEMENT REQUIRED: 0 Alaska Journal of Commerce ASAP 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 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. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. R cfore me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. 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 2012, and thereafter for consecutive days, the last publication appearing on the day of 2012, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and swom to before me This day of 2012, Notary public for state of My commission expires • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, November 15, 2012 1:42 PM To: Hultberg, Becky (DOA); Mike Barnhill; Thayer, Curtis W (DOA); Mills, Andy J (DOA); La Rose, Tina M (DOA) Subject: FW: Regulations AOGCC Elimination of the Permit to Drill Fee Attachments: Notice of Hearing, Additional Information and Proposed Regulations 11- 15- 12.pdf From: Colombie, Jody J (DOA) Sent: Thursday, November 15, 2012 1:40 PM To: Legislative Affairs Agency; resregs @legis.state.ak.us; senator_pete_kelly @legis.state.ak.us; senator_click_bishop @legis.state.ak.us; senator_ mike _dunleavy @legis.state.ak.us; senator_berta_gardner @legis.state.ak.us; Meyer, Kevin G (LAA); senator_anna_fairclough @legis.state.ak.us; senator_ peter _micciche @Iegis.state.ak.us; Egan, Dennis W (LAA); representative_doug_isaacson @legis.state.ak.us; representative_pete_higgins @legis.state.ak.us; Hughes, Shelley (LAA); representative_lynn_gattis @legis.state.ak.us; representative_gabrielle_ledoux @legis.state.ak.us; representative_andrew ,Josephson @legis.state.ak.us; representative_harriet_drummond @legis.state.ak.us; representative_geran_tarr @legis.state.ak.us; representative_Iora_reinbold @legis.state.ak.us; Munoz, Cathy N (LAA); representative_ Jonathan_ kreiss- tomkins @Iegis.state.ak.us; Foster, Neal W (LAA); representative_benjamin_nageak @legis.state.ak.us; Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Colombie, Jody 3 (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha 3 (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Bender, Makana K (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Wallace, Chris D (DOA); Aaron Gluzman; Aaron Sorrell; Bruce Williams; Bruno, Jeff 3 (DNR); caunderwood @marathonoil.com; Casey Sullivan; Dale Hoffman; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Franger, James M (DNR); Gary Orr; Smith, Graham 0 (PCO); Greg Mattson; Heusser, Heather A (DNR); James Rodgers; Jason Bergerson; Jennifer Starck; jill .a.mcleod @conocophillips.com; Joe Longo; King, Kathleen J (DNR); Lara Coates; Lois Epstein; Marc Kuck; Steele, Marie C (DNR); Matt Gill; Melissa Okoola; Ostrovsky, Larry (DNR sponsored); Bettis, Patricia K (DOA); Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Terrace Dalton; Wayne Wooster; Woolf, Wendy C (DNR); William Hutto; William Van Dyke; (michael.j.nelson @conocophillips.com); AKDCWelllntegrityCoordinator; alaska @petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; bbohrer @ap.org; Bill Penrose; Bill Walker; Bowen Roberts; Bruce Webb; Claire Caldes; Cliff Posey; Crandall, Krissell; D Lawrence; Daryl J. Kleppin; Dave Harbour; Dave Matthews; David Boelens; David Duffy; David House; Scott, David (LAA); David Steingreaber; Davide Simeone; ddonkel @cfl.rr.com; Elowe, Kristin; Francis S. Sommer; Gary Laughlin; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; Gregory Geddes; gspfoff; Jdarlington (jarlington @gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jill Womack; Jim White; Jim Winegarner; Joe Lastufka; news @radiokenai.com; Easton, John R (DNR); John Garing; John Spain; Jon Goltz; Jones, Jeffrey L (GOV); Judy Stanek; Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark P. Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; Mike Bill; mike @kbbi.org; Mike Morgan; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; knelson @petroleumnews.com; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Figel; Paul Mazzolini; Paul Winslow; Randall Kanady; Randy L. Skillern; Delbridge, Rena E (LAA); Renan Yanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Scott Cranswick; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Stan Porhola; Stephanie Klemmer; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield @aoga.org; Davidson, Temple (DNR); Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; yjrosen @ak.net; David Johnson; Joseph Flack; Tiffany Stebbins Subject: Regulations AOGCC Elimination of the Permit to Drill Fee The Alaska Oil and Gas Conservation Commission proposes to adopt changes in Title 20, Chapter 25 of the Alaska Administrative Code. Specifically, the Commission proposes to repeal 20 AAC 25.005(c)(1) to eliminate the filing fee required to accompany an application for a Permit to Drill. In addition, the Commission proposes to amend the language of 20 AAC 25.005(e)(2), 20 AAC 1 25.015(a)(1), 20 AAC 25.015(b)(1) and 2 AC 25.605(a) in order to delete all referen s to the filing fee required to accompany an application for a Permit to Drill. Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (lax) 2 Andrew L. Josephson Benjamin P. Nageak Doug Isaacson Post Office Box 230915 Post Office Box 914 2580 Stoneman Way Anchorage, AK 99523 -0915 Barrow, AK 99723 North Pole, AK 99705 Gabrielle LeDoux Geran Tarr Harriet A. Drummond 8859 Cross Pointe Loop Post Office Box 143141 2139 Solstice Cir. Anchorage, AK 99504 Anchorage, AK 99514 Anchorage, AK 99503 Jonathan S. Kreiss - Tomkins Lora Reinbold Lynn Gattis 805 Charles St. Post Office Box Box 772111 1650 N. Shoreline Dr. Sitka, AK 99835 Eagle River, AK 99577 Wasilla, AK 99654 Pete Higgins Anna I. Fairclough Berta Gardner 3875 Geist Rd., Ste. E -382 Post Office Box 771112 1405 Matterhorn Way Fairbanks, AK 99709 Eagle River, AK 99577 Anchorage, AK 99508 Click Bishop Mike J. Dunleavy Pete Kelly 3365 Sandvik Rd. 1830 E Parks Hwy, Ste. A -113, PMB #550 511 East Slater Dr. Fairbanks, AK 99709 Wasilla, AK 99654 Fairbanks, AK 99701 Peter A. Micciche Post Office Box 1544 Soldotna, AK 99669 s ( Easy Peele Labels j F ♦ Bend along line to AVERY® 5960T"' Use Avery® Template 5160® eed Paper - expose Pop -up EdgeTM I 1 • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group Cartography George Vaught, Jr. GEPS 810 Houston St., Ste. 200 P.O. Box 13557 5333 Westheimer, Ste. 100 Ft. Worth, TX 76102 -6298 Denver, CO 80201 -3557 Houston, TX 77056 Jerry Hodgden Richard Neahring Hodgden Oil Company NRG Associates Mark Wedman 408 18 St. President Hailiburton Golden, CO 80401 -2433 P.O. Box 1655 6900 Arctic Blvd. Colorado Springs, CO 80901 Anchorage, AK 99502 Bernie Karl CIRI K &K Recycling Inc. Land Department Baker oil Tools P.O. Box 58055 P.O. Box 93330 795 E. 94"' Ct. Fairbanks, AK 99711 Anchorage, AK 99503 Anchorage, AK 99515 -4295 North Slope Borough Planning Department Richard Wagner Gordon Severson P.O. Box 69 P.O. Box 60868 3201 Westmar Cir. Barrow, AK 99723 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669 -7714 \4„__,-cc N , 1 Q__s„ Q___ aim Iii Etiquettes faciles 2 peter ' Replies a la hachure afin de www.a ..�att_ — 1 _ ---1—.....:a. w•i. - n ,ffi ., r rnth i Sens de ... _ enc 1_Rlln_rtl_pVFRY 44 • MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: Regulations Attorney DATE: July 16, 2012 Legislation/Regulation Section Department of Law SUBJECT: Request for Legal Review of Regulations Project on Eliminating Filing Fees for an Application for a Permit to Drill 20 AAC 25.005(c )(1) FROM: Cathy . Foerster, Chair Regulations Contact Department of Administration We are requesting legal review and approval of the attached fmal regulations on Eliminating Filing Fees for an Application for a Permit to Drill, which were adopted by the Alaska Oil and Gas Conservation Commission. Enclosed are the following documents: 1. the original and one copy of the final regulations for the Department of Law's use; 2. the original signed and dated certification order; 3. the original of the public notice; 4. the original of the additional regulations notice information form distributed with the notice; 5. the original of the publisher's affidavit of publication; 6. affidavit of notice of proposed adoption of regulations and furnishing of additional information; 7. the original of the affidavit of oral hearing; 8. the original of the affidavit of commission action; We have worked with Assistant Attorney General Thomas Ballantine on the project. Upon completion of your review, please forward the regulations to the lieutenant governor for filing. • Register , 2012 MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) Repealed / / ; Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180 Authority: AS 31.05.030 AS 31.05.090 1 • • Register , 2012 MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) Repealed // i Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180 Authority: AS 31.05.030 AS 31.05.090 1 • • STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF COMMISSION ACTION I, Jody J. Colombie, Special Assistant to the Alaska Oil and Gas Conservation Commission, being sworn, state the following: The attached motion, dealing with eliminating filing fees for an application for a permit to drill regulation changes, was passed by the Alaska Oil and Gas Conservation Commission during its June 7, 2010 hearing. Date: August 20, 2012 Anchorage J y J. to ie Sp cial Assistant to the Commission SUBSCRIBED AND SWORN TO before me this 20th day of August, 2012. Notary Public in an the State of Alaska My commission expires: 11/11/2014 . • ALASKA OIL AND GAS CONSERVATION COMMISSION HEARING June 7, 2012 Hearing Commissioner John K. Norman moved and Commissioner Daniel T. Seamount, Jr. seconded the following motion: "I move to adopt 20 AAC 25.005(c)(1)." The motion carried unanimously. • STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF ORAL HEARING I, Cathy P. Foerster, Chair, Commissioner of the Alaska Oil and Gas Conservation Commission, being sworn, state the following: On June 7, 2012, at 9:00 a.m., 333 West 7 Avenue, Anchorage, Alaska 99501, I presided over a public hearing held under AS 44.62.210 for the purpose of taking testimony in connection with the repealing 20 AAC 25.005(c)(1) eliminating filing fees for an application for a permit to drill. DATE: July 16, 2012 Anchorage Cathy P Foerst Chair, ommissioner SUBSCRIBED AND SWORN TO before me this 16th day of July, 2012. • Notary Public in and or the State of Alaska 1/>( My commission expires: /i / /� • • STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) AFFIDAVIT OF NOTICE OF PROPOSED ADOPTION OF REGULATIONS AND FURNISHING OF ADDITIONAL INFORMATION I, Jody J. Colombie, Special Assistant to the Commission I, of the Alaska Oil and Gas Conservation Commission, being sworn, state the following: As required by AS 44.62.190, notice of the proposed adoption of changes to 20 AAC 25.005(c)(1) eliminating filing fees for an application for a permit to drill has been given by being (1) published in a newspaper or trade publication; (2) furnished to interested persons; (3) furnished to appropriate state officials; (4) furnished to the Department of Law, along with a copy of the proposed regulations; (5) electronically transmitted to incumbent State of Alaska legislators; (6) furnished to the Legislative Affairs Agency, Legislative Legal and Research Services; (7) posted on the Alaska Online Public Notice System as required by AS 44.62.175(a)(1) and (b) and 44.62.190(a)(1); (8) furnished electronically, along with a copy of the proposed regulations, to the Legislative Affairs Agency, the chair of the Resources Committee of the Alaska Senate and House of Representatives, the Administrative Regulation Review Committee, and the legislative council. As required by AS 44.62.190(d), additional regulations notice information regarding the proposed adoption of the regulation changes described above has been furnished to interested persons and those in (5) and (6) of the list above. The additional regulations notice information also has been posted on the Alaska Online Public Notice System. DATE: July 16, 2012 Anchorage, Alaska f / _ 674 4 J. J. s to ie Special Assistant to the Commission I SUBSCRIBED AND SWORN TO before me this 16t day of July, 2012. L � dec.- otary Public in and or the State of Alaska My commission expires: // / 114 • • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED O_02214014 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF I` A 1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. April 2, 2012 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: o Alaska Journal of Commerce ASAP 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement SEE ATTACHED SEND INVOICE: IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO ,.Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID 1 12 02140100 73451 2 REQUISITIONED BY (c 2 L .171Ai t DIVISION APPROVAL: 02 - 902 (Rev. 3/94) Publisher /Original Copies: Department Fiscal, Department, Receiving AO.FRM . • NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission propose to adopt regulation changes in Title 20, Chapter 25 of the Alaska Administrative Code. The Commission proposes to repeal 20 AAC 25.005(c)(1) to eliminate the filing fee required to accompany an application for a Permit to Drill. You may comment on the proposed regulation change, including the potential costs to private persons of complying with the proposed char by submitting written comments to Alaska Oil p e P p g, Y g and Gas Conservation Commission at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Additionally, the Alaska Oil and Gas Conservation Commission will accept comments by facsimile at (907) 276 -7542 and by electronic mail at Alaska Oil and Gas Conservation Commission. The comments must be received no later than 4:30 p.m. on May 15, 2012. Oral or written comments also may be submitted at a hearing to be held on June 7, 2012, at 333 West 7 Avenue, Anchorage, Alaska 99501. The hearing will be held at 9:00 a.m. and might be extended 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 needs a special accommodation in order to participate in this process, please contact Jody Colombie at (907) 793 -1221 no later than June 1, 2012 to ensure that any necessary accommodations can be provided. For a copy of the proposed regulation change, contact Jody Colombie at (907) 793 -1221 or go to www.aogcc.alaska.gov. After the public comment period ends, the Alaska Oil and Gas Conservation Commission will either adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of any final regulation may be different from the proposed regulation. You should comment during the time allowed if your interests could be affected. Statutory Authority: AS 31.05.030 and AS 31.05.090 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.090 Fiscal Information: The proposed regulation change is not expected to require an increased appropriation. DATE: Ap ril 2, 2012 /a2C74-- Cathy . Foerster, Chair, Commissioner • ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulation: eliminating the fee required to accompany an application for a Permit to Drill. 3. Citation of regulation: 20 AAC 25.005(c)(1). 4. Reason for the proposed action: compliance with revised state statute. 5. Appropriation/Allocation: 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: Name Cathy P. Foerster Title Chair, Commissioner Address 333 West 7 Avenue, Anchorage, Alaska 99501 Telephone (907) 793 -1221 E -mail address is jody.colombie @alaska.gov 8. The origin of the proposed action: Alaska Oil and Gas Conservation Commission staff. / 9. Date: April 2, 2012 Prepared by: 1. , ' k i t J. Co , m 'd Sp- cial Staff Assistant (907) 793 -1221 • 0 STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /� 0_02214014 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jody Colombie Anril 2.2012 ° Anc AK 99501 PHONE PCN M (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: T 0 Alaska Journal of Commerce ASAP accommodations can be provided. 301 Arctic Slope Avenue, Suite 350 For a copy of the J dys d regal i n Anchorage AK 99518 (907) 793 -1221 or go to www.aogcc.alaska.gov. After the public comment period I T HE MATERIAL BETWEEN THE DI ends, the Alaska Oil and Gas PRINTED IN ITS ENTIRETY ON TH Conservation Commission will either SPECIAL INSTRUCTIONS: adopt these or other provisions dealing with the same subject, ' without further notice, or decide to AFFIDAVIT OF PUBLICATION take no action on them. The language of any final regulation may be United states of America REM!, different from the proposed regulation. You should comment ,//�� `' during the time allowed if your State of tr-1 10.0 �„ ss If> 0fICE MUST BE IN'TRIPLIG J interests could be affected. THE:PfovERT'GthfG'QRDER NL Statutory Authority: AS 31.05.030 1 _1 and AS 31.05.090 1G0.1 djvjsjOn. A CERTIFIED COPY OF THIS A Statutes Being Implemented, NOTICE OF PROPOSED CHANGES IN TI Interpreted, or Made Specific: AS Before me, the undersigned, a notary public this day personally appeared THE REGULATIONS OF THE F — 31 .090 Information: The proposed ALASKA OIL AND GAS lam 1?!_16 �.� CONSERVATION COMMISSION regulation change is not expected to t41 �tLlltfl who, being first duly sworn, according to law, says that require an increased appropriation. 1 ,� � The Alaska Oil and Gas Conservation DATE: April 2.2012 he /she is th-li_ .:, V.441, ■ it I$ tI j_____ (C . __ fit' C Q Commission propose to adopt By:/s/Cathy P. Foerster, Chair, �/� � d regulation changes in Title 20, Commissioner Published atL1 't� in said division) J t,I�I�ICt � nd Chapter i 25 Code. the Alaska T A DDITIONAL REGULATIONS NOTICE Administrative Code. The INFORMATION ^ Commission proposes to repeal 20 (AS 44.62.190(d)) state of I L�1 l J ,n { and t at the advertisement, of which the annexed AAC 25.005(c)(1) to eliminate the ( filing fee required to accompany an 1. Adopting agency: Alaska Oil and application for a Permit to Drill. is a true copy, was published in said publication on the day of You may comment on the proposed Gas Conservation Commission. _ jni regulation change, including the 2. General subject of regulation: 2012, and thereafter for consecutive days, the last potential costs to private persons of eliminating the fee required to complying with the proposed change, accompany an application for a St by submitting written comments to : Permit to Drill. publication appearing on the O day of phY 2012, and that the Alaska Oil and Gas conservation 3. Citation of regulation: 20 MC Commission at 333 West 7th Avenue, 25.005(c)(1). Suite 100, Anchorage, Alaska 99501. 4. Reason for the proposed action: rate charged thereon is not in excess of - charged private individuals. Additionally, the Alaska Oil and Gas I compliance with revised state statute. Conservation Commission will accept 5. Appropriation /Allocation: AlaskE comments by facsimile at (907). 276- ' Oil and Gas Conservatior 7542 and by electronic mail at Alaska Commission. Oil and Gas Conservation 6. Cost of implementation to the staff Subscribed and sworn to before me I Commission. The comments must ; agency: zero. i be received no later than 4:30 p.m. on 1 7. The name of the contact persor This day of 1 ' 2012, ' May 15, 2012. ' for the regulations: Oral or written comments also may be Name Cathy P. Foerster ' ' submitted at a hearing to be held on Title Chair, Commissioner �1� . ► I . �. » \►l1 . 1► ► _ _ _ June 7, 2012, at 333 West 7th Address 333 West 7th Avenue, Nota ublic for state of NOTARY PUBLIC . Avenue, Anchorage, Alaska 99501. Anchorage, Alaska 99501 My commission expires BELINDA CUMMINGS ry p The hearing will be held at 9:00 a.m. Telephone (907) 793 -1221 land might be extended to E -mail address i STATE OF ALASKA accommodate those present before jody.colombie ©alaska.gov 9:30 a.m. who did not have an 8. The origin of the proposed actior MY COMMISSION EXPIRES June 14, 2012 % oppor t unity to comment. Alaska Oil and Gas Conservatio ' If you are a person with a disability Commission staff. who needs a special accommodation 9. Date: April 2, 2012 in order to participate in this process, Prepared by: Jody J. Colombie please contact Jody Colombia at' Special Staff Assistant (907) 793 -1221 no' later than June 1, (907) 793-1221 2012 to ensure that any necessary Pub: 4/8/2012 Ad #1016151 t • s Register , 2012 MISCELLANEOUS BOARDS 20 AAC 25.005(c)(1) is repealed: (1) [A FEE OF $100 PAYABLE TO THE STATE OF ALASKA/AOGCC;] // , Register _; (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, register 154; am 1/5/2006, Register 177; am 12/28/2006, Register 180) Authority: AS 31.05.030 AS 31.05.090 1 • S SERVICE LIST FOR PROPOSED AMENDMENTS TO 20 AAC 25.005(c)(1) On April 2, 2012, I mailed to the following individuals the public notice of proposed 1 amendments to 20 AAC 25.005(c)(1), additional regulations notice information, and proposed regulations: Debra Behr Chief Assistant Attorney General Legislation and Regulations Section Department of Law PO Box 110300 Juneau, AK 99811 1 • s Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, April 02, 2012 10:47 AM To: 'gov.alllegislators @alaska.gov'; resregs @legis.state.ak.us; Hultberg, Becky (DOA); Cramer, John W (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Herrera, Matt F (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Makana Bender; Matt Herrera; Maunder, Thomas E (DOA sponsored); McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); 'Aaron Gluzman'; 'Ben Greene'; 'Bruce Williams'; Bruno, Jeff J (DNR); 'CA Underwood'; Casey Sullivan; 'Dale Hoffman'; David Lenig; 'Donna Vukich'; Eric Lidji; Erik Opstad; Franger, James M (DNR); 'Gary Orr; 'Graham Smith'; 'Greg Mattson'; Heusser, Heather A (DNR); 'Jason Bergerson'; Jennifer Starck; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; Lois Epstein; Marc Kuck; 'Marie Steele'; 'Mary Aschoff; 'Matt Gill'; Maurizio Grandi; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DEC); Richard Garrard; 'Ryan Daniel'; 'Sandra Lemke'; Talib Syed; 'Ted Rockwell'; 'Wayne Wooster; 'Wendy Wollf; 'William Hutto'; 'William Van Dyke'; (michael.j.nelson @conocophillips.com); (Von. L. Hutchins @conocophillips.com); 'AKDCWelllntegrityCoordinator; Alan Dennis; aaska@petrocalc.com; Anna Raff; 'Barbara F Fullmer; bbritch; Becky Bohrer; Bill Penrose; Bill Walker; Bowen Roberts; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Havelock; Bruce Webb; caunderwood; Chris Gay; 'Claire Caldes'; Cliff Posey; Crandall, Krissell; 'D Lawrence'; dapa; Daryl J. Kleppin; 'Dave Harbour; 'Dave Matthews'; David Boelens; David House; 'David Scott'; David Steingreaber; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; Elowe, Kristin; Erika Denman; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Schultz (gary.schultz @alaska.gov); ghammons; Gordon Pospisil; Gorney, David L.; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; gspfoff; Jdarlington (jarlington @gmail.com); 'Jeanne McPherren'; Jeff Jones; Jeffery B. Jones (jeff.jones @alaska.gov); Jerry McCutcheon; Jill Womack; Jim White; Jim Winegarner; Joe Nicks; 'John Easton'; John Garing; John Katz (john.katz @alaska.gov); John S. Haworth; John Spain; Jon Goltz; Jones, Jeffrey L (GOV); Judy Stanek; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; 'Kim Cunningham'; Larry Ostrovsky; Laura Silliphant (laura.gregersen @alaska.gov); 'Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark P. Worcester; Marguerite kremer (meg.kremer @alaska.gov); 'Michael Dammeyer; Michael Jacobs; Mike Bill; Mike Mason; 'Mike Morgan'; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker @alaska.gov); 'Paul Figel'; 'Paul Mazzolini'; Randall Kanady; Randy L. Skillern; 'Rena Delbridge'; 'Renan Yanish'; rob.g.dragnich @exxonmobil.com; 'Robert Brelsford'; Robert Campbell; 'Ryan Tunseth'; Scott Cranswick; 'Scott Griffith'; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; 'Stephanie Klemmer; Steve Lambert; Steve Moothart (steve.moothart@alaska.gov); Steven R. Rossberg; 'Suzanne Gibson'; tablerk; Tamera Sheffield; Taylor, Cammy 0 (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; 'Tim Mayers'; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Will Chinn; Williamson, Mary J (DNR); Yereth Rosen; 'David Johnson'; 'Joseph Flack'; 'Tiffany Stebbins' Subject: Public Notice (Alaska Oil and Gas Conservation Commission) (repealing 20 AAC 25.005(c)(1) Attachments: 20 AAC 25.005(c)(1) Notice of hearing, Additional Information and Proposed Regulation.pdf Attached is a Notice of Proposed regulations of the Alaska Oil and Gas Conservation Commission repealing 20 AAC 25.005(c)(1) to eliminate the filing fee required to accompany an application for a Permit to Drill. Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 1 • S Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Richard Neahring Jerry Hodgden Mark Wedman NRG Associates Hodgden Oil Company Halliburton President 4081 18 Street 6900 Arctic Blvd. P.O. Box 1655 2 Golden, CO 80401 -2433 Colorado Springs, CO 80901 Anchorage, AK 9950 Bernie Karl CIRI K &K Recycling Inc. Land Department Baker Oil Tools P.O. Box 58055 P.O. Box 93330 795 E. 94 Ct. Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Penny Vadla Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669 -7714 Fairbanks, AK 99701 • • ORDER CERTIFYING THE CHANGES TO REGULATIONS OF ALASKA OIL AND GAS CONSERVATION COMMISSION The attached 1 page of regulations, dealing with eliminating filing fees for an application for a permit to drill, is certified to be a correct copy of the regulation changes that the Alaska Oil and Gas Conservation Commission adopted at its June 7, 2012 hearing, under the authority of AS 31.05.030 and AS 31.05.040 and after compliance with the Administrative Procedure Act (AS 44.62), specifically including notice under AS 44.62.190 and 44.62.200 and opportunity for public comment under AS 44.62.210. This action is not expected to require an increased appropriation. On the record, in considering public comments, the Alaska Oil and Gas Conservation Commission paid special attention to the cost to private persons of the regulatory action being taken. Although no public comments were received, the Alaska Oil and Gas Conservation Commission paid special attention to the cost to private persons of the regulatory action being taken. The regulation changes described in this order take effect on the 30th day after they have been filed by the lieutenant governor, as provided in AS 44.62.180. DATE: July 16, 2012 Anchorage, Alaska LA/ P Cathy P. Foerster Chair, Commissioner FILING CERTIFICATION I, Mead Treadwell, Lieutenant Governor for the State of Alaska, certify that on at .m., I filed the attached regulations according to the provisions of AS 44.62.040 - 44.62.120. Lieutenant Governor Effective: Register: Register *3 MISCELLANEOUS BOARDS eg , 20 AAC 25.005(c)(1) is repealed: (1) repealed / / ; 20 AAC 25.005(e)(2) is amended to read: (2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch [AND NEED NOT BE ACCOMPANIED BY THE $100 FEE]. (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 177; am 12/28/2006, Re Register 154; am 1/5/2006, eg Register 180; am / / , g Register g ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.015(a)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill if the proposed surface location is changed, if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; [HOWEVER, NO ADDITIONAL FEE IS REQUIRED;] or 20 AAC 25.015(b)(1) is amended to read: (1) submit and obtain the commission's approval of a new application for a Permit to Drill [, ACCOMPANIED BY A FEE OF $100,] if the proposed bottom -hole location or the proposed location of an objective formation is changed by more than 500 feet laterally or vertically, or if the change requires a spacing exception under 20 AAC 25.055; or 1 Register 2 MISCELLANEOUS BOARDS (Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 1/5/2006, Register 177; am / / , Register ) Authority: AS 31.05.030 AS 31.05.090 20 AAC 25.605 is amended to read: (a) The formula for determining a person's regulatory cost charge under AS 31.05.093 is RCC = VOr I VTOT * (A[ -F1 -L) where RCC = the regulatory cost charge; Vop = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, wells for which a Permit to Drill has been issued under AS 31.05.090, of which the person is the operator on the first day of the fiscal year, and that have not before that day been plugged and abandoned and reported as abandoned in accordance with this chapter; VTOT = the total volume of oil and gas produced from, and oil, gas, water, and other fluids injected into, during the most recently concluded calendar year, all wells for which a Permit to Drill has been issued under AS 31.05.090 and that have not before the first day of the fiscal year been plugged and abandoned and reported as abandoned in accordance with this chapter; A = the appropriation, other than from federal receipts, made for the operating costs of the commission for the fiscal year; [F = THE COMMISSION'S REASONABLE ESTIMATE OF THE TOTAL FEES TO BE COLLECTED UNDER AS 31.05.090 DURING THE FISCAL YEAR;] 2 Register , 26I3 MISCELLANEOUS BOARDS L = the lapsed amount of a previous appropriation that is appropriated for the fiscal year under AS 31.05.093 (d). (Eff. 6/4/2000, Register 154, Register 180; am / / , Register ) Authority: AS 31.05.030 AS 31.05.093 3 • S Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, November 19, 2012 1:44 PM To: Colombie, Jody J (DOA); 'Legislative Affairs Agency'; resregs @legis.state.ak.us; 'senator pete_kelly @legis.state.ak.us'; 'senator click _bishop @legis.state.ak.us'; 'senator mike _dunleavy @legis.state.ak.us'; 'senator berta _gardner @legis.state.ak.us'; Meyer, Kevin G (LAA); 'senator annafairclough @legis.state.ak.us'; 'senator_peter micciche @legis.state.ak.us'; Egan, Dennis W (LAA); ' _representative_ doug _isaacson @ legis.state.ak.us'; ' representative_ pete _higgins @ legis.state.ak.us'; Hughes, Shelley (LAA); ' representative_ lynn_gattis @ legis.state.ak.us'; ' representative_ gabrielle _ledoux @ legis.state.ak.us'; ' representative _andrewjosephson @legis. state.ak. us'; ' representative_ harriet _drummond @ legis.state.ak.us'; ' representative _geran_tarr @legis.state.ak.us'; ' representative_ lora _reinbold @ legis.state.ak.us'; Munoz, Cathy N (LAA); 'representativejonathan_ kreiss- tomkins @legis.state.ak.us'; Foster, Neal W (LAA); ' representative_ benjamin _nageak @ legis.state.ak.us'; 'Angela Singh'; Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); 'Brooks, Phoebe'; Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); 'Makana Bender; McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqua!, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); 'Wallace, Chris (DOA sponsored)'; 'Aaron Gluzman'; 'Aaron Sorrell'; 'Bruce Williams'; Bruno, Jeff J (DNR); 'CA Underwood'; Casey Sullivan; 'Dale Hoffman'; David Lenig; 'Donna Vukich'; Eric Lidji; Erik Opstad; Franger, James M (DNR); 'Gary Orr; 'Graham Smith'; 'Greg Mattson'; Heusser, Heather A (DNR); 'James Rodgers'; 'Jason Bergerson'; Jennifer Starck; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; Lois Epstein; Marc Kuck; 'Marie Steele'; 'Matt Gill'; Melissa Okoola; 'Ostrovsky, Larry Z (DNR)'; 'Patricia Bettis'; Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Richard Garrard; 'Ryan Daniel'; 'Sandra Lemke'; Talib Syed; Terrace Dalton; 'Wayne Wooster; 'Wendy Wollf; 'William Hutto'; 'William Van Dyke'; '( michael .j.nelson @conocophillips.com)'; 'AKDCWelllntegrityCoordinator; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer; 'Bill Penrose'; 'Bill Walker; 'Bowen Roberts'; 'Bruce Webb'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'Daryl J. Kleppin'; 'Dave Harbour; 'Dave Matthews'; 'David Boelens'; 'David Duffy'; 'David House'; 'David Scott; 'David Steingreaber; 'Davide Simeone'; 'ddonkel @cfl.rr.com'; 'Elowe, Kristin'; 'Francis S. Sommer; 'Gary Laughlin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner; 'Joe Lastufka'; 'Joe Nicks'; 'John Easton'; 'John Garing'; 'John Spain'; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Judy Stanek'; 'Julie Houle'; 'Julie Little'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Laura Silliphant (laura.gregersen @ alaska.gov)'; 'Luke Keller; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester; 'Marguerite kremer (meg.kremer @alaska.gov)'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker @alaska.gov); 'Paul Figel'; 'Paul Mazzolini'; 'Paul Winslow'; Randall Kanady; Randy L. Skillern; 'Rena Delbridge'; 'Renan Yanish'; 'Robert Brelsford'; Robert Campbell; 'Ryan Tunseth'; Scott Cranswick; 'Scott Griffith'; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Stan Porhola; 'Stephanie Klemmer; Steve Moothart (steve.moothart@alaska.gov); Steven R. Rossberg; 'Suzanne Gibson'; Tamera Sheffield; Temple Davidson; Teresa Imm; Thor Cutler; 'Tim Mayers'; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Yereth Rosen; 'David Johnson'; 'Joseph Flack'; 'Tiffany Stebbins' Subject: RE: Regulations AOGCC Elimination of the Permit to Drill Fee Attachments: Brief description language added Public Notice.pdf Everyone - Attached is an updated Public Notice. You received the original from me last Friday. The only change is the addition of the "Brief Description" portion of the Public Notice. 1 • • Andrew L. Josephson Benjamin P. Nageak Doug Isaacson Post Office Box 230915 Post Office Box 914 2580 Stoneman Way Anchorage, AK 99523 -0915 Barrow, AK 99723 North Pole, AK 99705 Gabrielle LeDoux Geran Tarr Harriet A. Drummond 8859 Cross Pointe Loop Post Office Box 143141 2139 Solstice Cir. Anchorage, AK 99504 Anchorage, AK 99514 Anchorage, AK 99503 Jonathan S. Kreiss- Tomkins ra Reinbold Lo a bold L nn Gatt is Lynn Charles St. Post Office Box 772111 1650 N. Shoreline Dr. Sitka, AK 99835 Eagle River, AK 99577 Wasilla, AK 99654 Pete Higgins Anna I. Fairclough Berta Gardner 3875 Geist Rd., Ste. E -382 Post Office Box 771112 1405 Matterhorn Way Fairbanks, AK 99709 Eagle River, AK 99577 Anchorage, AK 99508 Click Bishop Mike J. Dunleavy Pete Kelly 3365 Sandvik Rd. 1830 E. Parks Hwy., Ste. A -113, PMB #550 511 E. Slater Dr. Fairbanks, AK 99709 Wasilla, AK 99654 Fairbanks, AK 99701 Peter A. Micciche Post Office Box 1544 Soldotna, AK 99669 Qc_ ( C( 1 Easy Peel® Labels 1 A MOM Bend along line to AVERY® 5960T"" Use Avery® Template 5160® ® eed Paper '°° expose Pop-up EdgeTM A A Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston St., Ste. 200 5333 Westheimer, Ste. 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Neahring man k Wed Hodgden Oil Company NRG Associates Ma Hal r Wed Golds m St. President P.O. Box 1655 6900 Arctic Blvd. Golden, CO 80401 -2433 Colorado Springs, Co 80901 Anchorage, AK 99502 Bernie Karl CIRI K &K Recycling Inc. Land Department Baker Oil Tools P.O. Box 58055 P.O. Box 93330 795 E. 94 th Ct. Fairbanks, AK 99711 Anchorage, AK 99503 Anchorage, AK 99515 -4295 North Slope Borough Richard Wagner Gordon Severson P.O. Box Planning Department P.O. Box 60868 3201 Westmar Cir. Fairbanks, AK 99706 Anchorage, Barrow, AK K 99723 g , AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.Q. Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 Penny Vadla 399 W. Riverview Ave. Soidotna, AK 99669 -7714 *n . k ....c..... c c V C; q- 0 --CZS ( 2_ Eki Ai Repliea a la hachure afin de i www.avery.com i ttiquettes faciles a peter Sens de , „ MC s_unn_�r�_aVr RV ! ._ . . __.. nvrmra rw Gno4 I .• r ' 3 • . 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 Before Commissioners: Cathy Foerster, Chair 3 Daniel T. Seamount 4 John K. Norman 5 In the Matter of the Elimination 6 of the Filing Fee Required to 7 Accompany an Application for a 8 Permit to Drill. 9 10 Docket No.: 11 ALASKA OIL and GAS CONSERVATION COMMISSION 12 Anchorage, Alaska 13 June 7, 2012 14 9:00 o'clock a.m. 15 VOLUME I 16 PUBLIC HEARING 17 BEFORE: Cathy Foerster, Chair 18 Daniel T. Seamount, Commissioner 19 John K. Norman, Commissioner • 1 TABLE OF CONTENTS 2 Opening remarks by Chair Foerster 03 2 • . 1 P R O C E E D I N G S 2 (On record - 9:02 a.m.) 3 CHAIR FOERSTER: Good morning. I'll call this 4 hearing to order. This is a public hearing to consider 5 proposed regulations pertaining to the elimination of the 6 filing fee required to accompany an application for a 7 permit to drill. 8 In 2007 the Legislature enacted statutory 9 amendments to Alaska Statute 31.05, one of those 10 amendments eliminated the statutory filing fee required 11 to accompany permit to drill applications. The Alaska 12 Oil & Gas Conservation Commission is repealing this 13 regulation to conform the regulation to the statute that 14 was amended. 15 The hearing is being held on the morning of June 16 7th, 2012 at 9:02 a.m. The location is the Commission's 17 offices at 333 West Seventh Avenue, Suite 100, Anchorage, 18 Alaska. 19 I'll first introduce the Commissioners. To my 20 right is Commissioner John Norman, to my left is 21 Commissioner Dan Seamount and I'm Cathy Foerster, the 22 Chair. 23 Computer Matrix will be recording the 24 proceedings. Upon completion and preparation of the 25 transcript anyone desiring a copy will be able to obtain 3 • • 1 it by contacting Computer Matrix or by contacting Jody 2 Colombie, the Commission's Special Assistant doing the 3 float wave, and she'll facilitate your getting a copy. 4 The Commissioners would like to remind those who 5 are testifying to speak into the microphone so that 6 persons in the rear of the room can hear and so the court 7 reporter can get a clear recording. 8 Specifically today the Alaska Oil & Gas 9 Conservation Commission proposes to repeal 20 AAC 10 25.005(c)(1) of the Alaska Administrative Code to 11 eliminate the filing fee requirement. This hearing is 12 being held in accordance with AS 44.62 and 20 AAC 25.540 13 of the Alaska Administrative Code. This hearing will be 14 recorded. 15 To have a question directed to someone testifying 16 we ask that you provide your question in writing along 17 with your name and that of the witness to a designated 18 Commission representative. Before the end of the hearing 19 the Commission will review any questions and ask those it 20 believes to be helpful in eliciting relevant information. 21 22 The notice of this hearing was published in the 23 Alaska Journal of Commerce on April 8th, 2012. It was 24 also posted on the state of Alaska online notices website 25 as well as the AOGCC's own website on April 2nd, 2012. 4 • • 1 We have not received any written comments. 2 When considering the factual, substantive and 3 other relevant matters the agency shall pay special 4 attention to the cost to private persons of the proposed 5 regulatory action. 6 Commissioner John Norman will provide comments 7 for this consideration. 8 COMMISSIONER NORMAN: Thank you, Madam Chair. 9 I'd like to place into the record a little bit of brief 10 background and rationale for the amendment. 11 For decades the statute controlling the Alaska 12 Oil & Gas Conservation Commission, specifically 13 31.05.090, contained as part of the requirement for 14 obtaining a permit to drill that a $100 filing fee 15 accompany each application. This resulted in annual 16 receipts of somewhere between 20 and $25,000 per year by 17 the Commission. The Commission in 2007 examined the 18 relevance of this permit fee which existed at the same 19 amount for decades and considered whether it ought to be 20 changed in some fashion. Among the options was an 21 increase in the fee to raise the amount to make the 22 application fee more properly reflect the actual cost to 23 the Commission and regulated community of processing a 24 permit to drill. 25 Another option was to simply dismiss the fee 5 • . 1 entirely. This was discussed at hearings and comments 2 were submitted by the public and the regulated industry 3 to the Commission. It then went through the legislative 4 process and was the subject of hearings before the 5 Legislature in Juneau. The conclusion was that the fee 6 generating about 20 to 25,000 per year made only a very 7 nominal contribution towards the Commission's 8 multimillion dollar annual budget. Additionally by 9 requiring a $100 fee some forward looking person said 10 that it will eventually become a nuisance fee at such 11 time as the Commission is ready to move into true 12 electronic commerce and allowing permits to be submitted 13 electronically and processed that way. It added one 14 level of complication about how to get money to the 15 Commission for this payment. 16 Another consideration was the fact that the fee 17 when it comes in, the 20 to $25,000 per year, is part of 18 a formula then that was used to calculate the Regulatory 19 Cost Charge for that year on industry. It would reduce 20 slightly that amount, but on the other hand most of the 21 fees paid for applications for permits to drill are paid 22 by persons already subject to the Regulatory Cost Charge. 23 So if you will the process sort of went through a 24 revolving door with no great benefit to anyone. 25 These things were all considered at that time and 6 • • 1 this culminated in the adoption and enactment in Section 2 12 of Chapter 54 of the Session Laws of 2000 of a 3 repealer of that statutory provision previously contained 4 in Alaska Statute 31.05.090. With the repeal of the 5 statute which is a fact, this left the regulation hanging 6 in the air without any statutory foundation and 7 consequently the purpose of this proposed amendment is 8 simply to make the regulation consistent with the statute 9 as changed by the Legislature. 10 So with that brief explanation I will move that 11 we adopt the amendment and I'd be happy to answer any 12 questions if there are any. 13 CHAIR FOERSTER: Is there a second? 14 COMMISSIONER SEAMOUNT: I second it. 15 CHAIR FOERSTER: All right. The motion has -- 16 it's been moved and seconded that we eliminate the 17 requirement of a $100 Regulatory Cost fee from our 18 regulations so that the regulations are consistent with 19 the statutes. All in favor say aye. 20 IN UNISON: Aye. 21 CHAIR FOERSTER: Opposed. 22 (No opposing votes) 23 CHAIR FOERSTER: Hearing no opposition the motion 24 is passed. 25 Is there any other business to be conducted 7 • • 1 during this meeting. 2 (No comments) 3 CHAIR FOERSTER: All right. Then I adjourn the 4 hearing. 5 (Adjourned - 9:10 a.m.) 6 (END OF PROCEEDINGS) 8 • • 1 TRANSCRIBER'S CERTIFICATE 2 I, Salena A. Hile, hereby certify that the 3 foregoing pages numbered 02 through 09 are a true, 4 accurate, and complete transcript transcribed under my 5 direction from a copy of the electronic sound recording 6 to the best of our knowledge and ability. 7 8 9 Date Salena A. Hile, Transcriber 10 9 • • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION REGULATION CHANGES 20 AAC 25005(C)(1) June 7, 2012 at 9:00 am NAME AFFILIATION PHONE # TESTIFY (Yes or No) C ('IC ln� '7 r1 0i \1Ihc\ R-)1191/ 6 CC )2Z k\r ah(' t s G ✓ a L ( a c e 04(96 c c . - 7 i z so M 0 1 # 2 1 • MEMORANDUM State of Alaska Department of Law To: Hon. Becky Hultberg, Commissioner Date: April 4, 2012 Dept. of Administration Tel. No.: 465 -3600 �� File No.: JU2012200319 id From: Deborah E. Behr Re: Regulations File Opening Re: Chief Assistant Attorney General 20 AAC 25.005(c)(1): Alaska Oil and Regulations Attorney and Gas Conservation Commission: Legislation and Regulations Section Eliminate Filing Fee for an Application for a Permit to Drill We have received Cathy P. Foerster's file opening request of April 2, 2012 regarding the above - referenced project, along with a copy of the proposed regulations and related documents. The project has been assigned to Assistant Attorney General Tab Ballantine, phone number 269- 5100. Our department's file number for this regulations project is JU2012200319. This file number should be used on any further correspondence pertaining to this project. DEB:pav cc: Mike Barnhill, Regulations Contact Dept. of Administration Cathy P. Foerster, Regulations Contact Alaska Oil and Gas Conservation Commission Dept. of Administration Jody Colombie, Special Assistant Alaska Oil and Gas Conservation Commission Dept. of Administration Scott Clark, AAC Coordinator Office of the Lt. Governor Randy Ruaro, Deputy Chief of Staff Office of the Governor Martin Schultz, Chief Assistant Attorney General Oil, Gas and Mining Section Tab Ballantine, Attorney General Anchorage 41 • . MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: Deborah E. Behr DATE: April 2, 2012 Legislation and Regulations Section SUBJECT: File opening request for new regulations project to eliminate the filing fee for an application for a Permit to Drill. ik 20 AAC 25.005(c)(1) FROM: Cathy P. Foerste Regulations Contact Department of Administration We are requesting that you open a new file for the Alaska Oil and Gas Conservation Commission project to repeal Title 20, Chapter 25, Section 005(c)(1) to eliminate filing fee required to accompany an application for a Permit to Drill. AS 31.05.090 was amended in 2007 to eliminate the $100.00 filing fee. This change is needed to conform the regulation to the statute. Enclosed is the public notice, additional regulations notice information, and proposed amendments to 20 AAC 25.005(c)(1). Please assign an assistant attorney general to this project. We have worked with Assistant Attorney General Thomas Ballantine on this topic. Our contact person for the project is Jody Colombie at (907) 793 -1221 or j ody.colombie @alaska.gov.