Session: State Capitol, Room 516 Juneau, AK 99801-1182 Phone: (907) 465-2095 Fax: (907) 465-3810 Subscribe to Newsletter Weekly Report from Juneau Interim: 716 W 4th Avenue, Suite 520 Anchorage, AK 99501-2133 Phone: (907) 269-0240 Fax: (907) 269-0242

Sponsor Statement for CSSB 121 (RES)am H
Right-of-Way Leases

An Act adding, for purposes of the Alaska Right-of-Way Leasing Act, a definition of 'substantial change' as applied to an amended right-of-way lease application; and providing for an effective date.

Commercialization of North Slope gas is one of our legislative priorities. This technical amendment to Alaska's Right-of-Way Leasing Act will ensure less ambiguity for processing right-of-way applications.

Resources Committee Substitute for Senate Bill 121 provides a statutory definition of "substantial change" as that term is used in AS 38.35.050(c). This section provides that "any amendment to an application filed under this section which constitutes a substantial change in the application is subject to all provisions of this chapter applying to an original application." The statutes provide no guidance to applicants, the Department of Natural Resources or other interested parties as to what is or is not a substantial change.

The difficulty with the language as it exists is that any or all changes to an original pipeline right-of-way lease application could be argued to be substantial.

This legislation establishes that

• a 10 percent net increase in state acreage beyond what was in the original application (It is my understanding that this is consistent with existing department policy.), or
• using less effective environmental or safety mitigation measures than proposed in the original application; or
• proposing a fundamental change in the route, which would include the origin or terminus, as proposed in the original application

would be substantial enough to require restarting the entire administrative process for obtaining a right-of-way lease across state lands.

This legislation will not foreclose on opportunities for the public and affected agencies to review and comment on subsequent amendments to initial lease applications. It will, however, provide an increased measure of certainty and will minimize unnecessary challenges and delays in processing, approving and issuing right-of-way leases.

# # #

Attachments:

• Sectional Analysis
• Print Friendly Version
  requires Adobe Acrobat Reader - 1 page(s) - 91 K

| Sen. Leman's Page |

| Top | Home | Site Search | Breaking News | Legislators | Bills |
| Committees | E-Newsletter | Surveys | Research | Help |

The Official Web Site of the House and Senate Legislative Majorities
for the 22nd Alaska State Legislature
To Report Technical Problems or Contact Webmasters