(Juneau)-The Senate Resources Committee will take public testimony Monday on a bill that would require a best interest finding before shallow gas leasing or exploration licensing could take place.

Senate Bill 312 replaces the current over-the-counter shallow gas leasing process that allows gas companies to lease land on a first-come, first-serve basis.

Sen. Scott Ogan (R-Mat-Su/Chugiak) chairs the Senate Resources Committee, which introduced Senate Bill 312 Feb. 9. It was introduced at the request of citizens from the Mat-Su and Kenai Peninsula areas and incorporates recommendations from Resources Committee members and from public meetings held by the Department of Natural Resources.

SB 312 responds to the unintended consequences of legislation passed in 1996 to encourage development of alternative gas resources in areas of the state not on the power grid that allowed leases in populated residential areas in Mat-Su and Homer.

SB 312 would allow for extensive public notice and comments before leasing. It creates a gas only section of area-wide leasing and exploration licensing identified in a best interest finding by the Department of Natural Resources; differentiates between conventional and non-conventional gas development and treats each appropriately; and recognizes that lease rights should not be determined by depth only.

SB 312 will be heard in Senate Resources at 3:30 p.m. Monday and will be teleconferenced to local Legislative Information Offices. The public is invited to testify.

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