Gas bill leads to finger pointing

A piece of legislation passed during the last legislative session is causing a flap between Valley legislator Sen. Scott Ogan and incumbent Mat-Su Borough mayor and candidate for re-election, Tim Anderson.

Both Anderson and mayoral candidate Charlie Fannon sent letters to Evergreen Resources Inc. chief executive officer Mark Sexton, asking, according to a letter from Sexton, for a clarification of Evergreen's policies, commitments, plans and business practices. Anderson's letter asked Sexton to indicate in writing that it supports the repeal of House Bill 69, a much-scrutinized bill streamlining oil and gas regulations as they pertain to the shallow-gas industry and allowing the Department of Natural Resources Commissioner to override local control if the state's need supersedes local regulations. The bill was sponsored by Rep. Vic Kohring, R-Wasilla, who wrote it with input from Evergreen Resources officials.

Sexton told the audience at a Wasilla Town Hall meeting hosted by Evergreen he sent similar letters to both candidates. In the letter sent to Anderson, Sexton asked whether Anderson wanted a repeal of the entire HB 69 bill or just the portion pertaining to local control.

"We understood the borough worked closely with the Alaska Municipal League on this issue," Sexton wrote. "Our understanding is the AML endorsed the local control language in writing, with your encouragement."

Sexton said his conversations with the Valley delegation "suggested that a compromise proposed by you [Anderson] gave you comfort with the local control you now have in the bill. The bill passed the Senate on a 19 to 1 vote. We are confused by this reversal of policy by your administration."

Ogan, in a meeting in his office Wednesday, reiterated Sexton's claims.

"AML told me the only person who contacted them was the Mat-Su Borough," Ogan said, referring to discussions that took place prior to HB 69's passage. "AML was having problems [with the bill] and I know they were representing the borough. The borough administration was culpably aware this was going on."

AML is, according to their Web site, a voluntary, nonprofit, nonpartisan statewide organization of more than 140 cities, boroughs and unified municipalities in Alaska. Associate members, in the form of organizations and commercial firms, as well as affiliates -- professional associations of municipal officials can also take part in AML activities. In addition to presenting a "unified voice of Alaska's municipalities to successfully influence favorable federal and state legislation, programs and policies," AML provides training and services to local governments and works to solve challenges facing Alaska.

AML is not, Anderson said, a lobbyist for the borough. He characterized their relationship with the borough as more of a watchdog group that monitors what's going on in Juneau and keeps municipalities updated.

The borough has a paid state lobbyist, Ray Gillespie, who works to forward borough projects or issues. When contacted for this story, Gillespie refused to comment and referred questions to borough administrators.

Ogan said he had been contacted about the borough's concern with the bill while it was in the Senate, but wasn't able to say who contacted him. He said he had directed his staff to try to find a way to fix it, and believed the borough had "signed off on a compromise" by the time the bill passed.

He said he believed the issue was being resurrected to help Anderson's campaign.

"His administration brokered the deal and now he's covering it up," Ogan said.

Anderson said there is no cover-up going on, and said he believes the issue is campaign related -- related to his opponent's campaign, that is, and to Ogan's recent unpopular position with Evergreen.

Ogan contributed $500 to Fannon's campaign and, last Tuesday, announced his decision to resign as a consultant with Evergreen.

"In my opinion, he's trying to save face," Anderson said. "We've pretty well established that the local control section [of HB 69] wasn't necessary."

The portion pertaining to local control was not in the original version of HB 69. It was added in a Senate Resources Committee substitute of the bill. Although Ogan chairs that committee, he had assigned the bill to a subcommittee, chaired by Eagle River Sen. Fred Dyson.

When the legislation came back to the committee, Ogan asked to be excused from taking action on the issue, and turned the meeting over to Sen. Tom Wagoner, R-Kenai, the vice-chair of the committee, but Ogan still took part in the discussion leading to the bill's passage.

Kevin Ritchie, executive director of AML, sent an e-mail on Oct. 1 to Borough Manager John Duffy, reiterating his recollection of events surrounding HB 69. Ritchie said Ogan's portrayal of a cover-up by the borough and AML was flawed.

"… AML did not work more closely with Mat-Su on the bill than with any other municipality," Ritchie wrote in the letter. "In fact, there was such a rush of bills and key issues facing the communities that we got very little time with any municipality on the issue … AML did not endorse the bill, but worked to make the provisions regarding local control somewhat better. Organizations dealing with legislation often work to make a bill as good as it can be even if they don't support it."

Anderson, in a letter dated Oct. 1 that was available at the Wasilla meeting, outlined the course of events.

"When the borough became informed about HB 69 by its lobbyist we registered our opposition to the reduction of local control to our lobbyist," Anderson wrote.

"The borough lobbyist conveyed our concerns to the sponsors of HB 69 and testified that the borough had concerns about the loss of local control. Mr. [David] Germer, the borough's assistant manager, also spoke with representatives of Evergreen Resources Inc. and conveyed the borough's concerns over HB 69," he continued.

Anderson said the bill "moved through the legislative process so quickly that an assembly resolution opposing HB 69 could not be presented to the assembly for consideration."

Faster, Anderson said, than the borough could formally object to language taking away local control -- and now, he said, the bill allows the Department of Natural Resources Commissioner to override a locally adopted coal-bed methane regulation if the commissioner finds it to be in the state's interest. Anderson said the situation isn't resolved -- he's asked Evergreen to support the repeal of HB 69.

Ogan said he didn't see a lot of situations where the commissioner would be forced to make that call.

"Overall, any issue that compromises the state's ability to develop the property it has rights to … is the only thing the commissioner could override," Ogan said.