| Issue | Alaska Property Owners' Bill of Rights | Matanuska-Susitna Borough Ordinance Serial No. 04-175 (AM) | HB 531 | Proposed Enforceable Standards for Coalbed Methane Development From State Owned Resources in the Matanuska-Susitna Borough | Final Enforceable Standards for Development of State Owned Coalbed Methane Resources in the Matanuska-Susitna Borough |
|---|---|---|---|---|---|
| Property Owner Consent and Legal Rights | Property owners have a legal right to say if, when, where and how anyone comes onto their property to explore, develop, and/or produce subsurface minerals; the state provides a fund for property owners to hire legal counsel, and property owners are protected from retaliatory lawsuits | Written surface use agreement required wherever CBM operations occur | Does not address, however state law requires completion of a surface use agreement or, if the surface property owner refuses, the posting of a bond to cover potential surface damages to allow subsurface mineral extraction to proceed [applies only to state subsurface holdings -- not private, federal, Mental Health Trust, state university, and Native Corporation subsurface holdings] | Does not address | Does not address. Provides bond proceedings through ADNR if operator demonstrates that property owner has refused 'good-faith effort'. |
| Lease Acquisition | State buys back all CBM leases acquired prior to passage of HB 531 (May 2004), and halts leasing until consistent statewide CBM leasing procedures and operating regulations are in place | Not applicable | Does not address | Pre-HB 531 CBM leases remain in the Homer area; the "enforceable standards" do not apply to private, federal, Mental Health Trust, state university, and Native Corporation subsurface holdings, nor to locations not in the Mat-Su Borough | No change. Pre-HB 531 CBM leases remain in the Homer area; the "enforceable standards" do not apply to private, federal, Mental Health Trust, state university, and Native Corporation subsurface holdings, nor to locations not in the Mat-Su Borough |
| Public Notice | State provides all landowners within 5 miles of a proposed CBM lease -- and local, municipal, and tribal entities with jurisdiction over proposed leased areas -- written notice before leasing begins | At CBM operators' expense, the Borough sends all landowners within 1 mile of CBM operations -- and relevant community councils and postmasters, and others who have requested notification -- notice of the required public hearing on proposed CBM infrastructure | Does not address, however the state provides non-individualized public notice of proposed leases | No individual notice of proposed CBM leases, except to those who have submitted a written request to DNR | No individual notice required during leasing phase. After leases are awarded, ADNR and/or operators are required to provide notice to property owners within a half mile of work site and to community councils and municipalities within or adjacent to the activity area, as well as those residents and organizations who have requested notice. |
| Best Interest Finding | Prior to issuing CBM leases, the state must perform a best interest finding process which analyzes the economic, environmental, and social costs and benefits of potential CBM operations | Does not address | Prior to issuing CBM leases, the state must perform a best interest finding process which analyzes the economic, environmental, and social costs and benefits of potential CBM operations | DNR may perform a best interest finding process [HB 531, which passed after the proposed "enforceable standards" were issued, requires a best interest finding process] | Does not address. [HB 531, which passed after the proposed "enforceable standards" were issued, requires a best interest finding process] |
| Baseline Studies and Post-Development Impacts | Required baseline studies: water quality and quantity, methane seepage, hydrology and geology, fish and wildlife populations; adverse changes in these conditions within 5 years after CBM operations begin shall be presumed to be caused by them unless the operator proves otherwise | Required baseline studies: surface and groundwater monitoring, methane seepage, hydrology, fish and wildlife habitat and wildlife migration routes, historic and archeological sites, and earthquake fault data; required ongoing surface and monthly groundwater monitoring | Required baseline studies: water quality and quantity | DNR may require a CBM operator to collect baseline and ongoing water quantity and quality data, and will require baseline data on geophysical hazards and prehistoric, historic, and archeological sites [HB 531, which passed after the proposed "enforceable standards" were issued, requires baseline water quality and quantity studies] | DNR may require a CBM operator to collect baseline and ongoing water quantity and quality data, and will require baseline data on geophysical hazards and prehistoric, historic, and archeological sites [HB 531, which passed after the proposed "enforceable standards" were issued, requires baseline water quality and quantity studies] |
| Local Regulation | Local governments can regulate CBM operations to protect health, safety, general welfare and quality of life for local residents | The Ordinance is classified as local regulation | Overturns previous law and allows local governments to regulate CBM operations | Does not address. [HB 531, which passed after the proposed "enforceable standards" were issued, allows local regulation] | Recommends that the Borough change its ordinance to resemble ADNR's Enforceable Standards. [HB 531, which passed after the proposed "enforceable standards" were issued, allows local regulation] |
| Off-Limits Areas | State prohibits CBM operations in sensitive wildlife areas, particularly those areas used for subsistence, hunting, fishing and recreational activities | Borough prohibits CBM operations on properties with conservation easements that restrict development; to the maximum extent practicable, the Borough prohibits CBM operations in geologic hazard areas, areas with slopes exceeding 30%, wetlands under the jurisdiction of the U.S. Army Corps of Engineers, and stream and river floodways | Does not address | DNR may prohibit CBM operations in sensitive wildlife areas, including areas used for subsistence. | No change. DNR may prohibitCBM operations in sensitive wildlife areas, including areas used for subsistence. |
| Surface and Groundwater Protection | State prohibits CBM operations in groundwater aquifers that are the source of existing or future water wells, prohibits use of toxic hydraulic fracturing fluids, and requires reinjection of all produced water and drilling and other liquid wastes into deep-well injection zones | Facilities must be located, developed, and operated to avoid or minimize negative impacts to groundwater and surface water supplies; required ongoing surface and monthly groundwater monitoring | Unless the Alaska Oil and Gas Conservation Commission determines that a CBM well will not adversely impact a drinking water or agricultural aquifer, the state prohibits CBM wells in groundwater used for human consumption or agricultural purposes | DNR prohibits the use of only diesel-based hydraulic fracturing fluids, and allows discharge to surface water of treated produced water | No change. DNR prohibits the use of only diesel-based hydraulic fracturing fluids, and allows discharge to surface water of treated produced water |
| Regulatory Standards | State issues enforceable statewide regulations which require best available technology and practices covering: noise, air and water quality, setbacks, toxic chemical use and disposal, and surface restoration (including bonding) | The Ordinance contains noise and visual mitigation standards, setback standards, a well spacing standard, residential area prohibitions, safety and security standards, and standards to minimize surface disturbance | No specific standards, however HB 531 does require the Alaska Oil and Gas Conservation Commission to regulate hydraulic fracturing in CBM operations to protect drinking water quality and to regulate waste disposal for CBM wastes not regulated by the Alaska Department of Environmental Conservation or the U.S. Environmental Protection Agency | The "enforceable standards" contain noise and visual mitigation standards, setback standards, and prohibit the use of toxic diesel-based hydraulic fracturing fluids;the standards do not address groundwater quality and full restoration except for discretionary bonding amounts for restoration purposes.The standards do not apply to private, federal, Mental Health Trust, state university, and Native Corporation subsurface holdings, nor to locations not in the Mat-Su Borough | The "enforceable standards" contain new noise standards and similar visual mitigation and setback standards, and prohibit the use of toxic diesel-based hydraulic fracturing fluids;the standards do not address groundwater quality and full restoration except for discretionary bonding amounts for restoration purposes.The standards do not apply to private, federal, Mental Health Trust, state university, and Native Corporation subsurface holdings, nor to locations not in the Mat-Su Borough |
| Maximizing Revenue | State has a competitive bidding process for CBM leases | CBM operators pay the Borough exploration and development/production application fees and annual fees for permitting and enforcement | Requires the state to have a competive bidding process for CBM leases | Does not address. [HB 531, which passed after the proposed "enforceable standards" were issued, requires competitive bidding for CBM leases] | Does not address. [HB 531, which passed after the proposed "enforceable standards" were issued, requires competitive bidding for CBM leases] |