Senate Panel Questions DNR Commissioner Nominee on Gas Development

The Alaska Senate Resources Committee questioned Commissioner John Crowther on Tuesday about his nomination to lead the Department of Natural Resources, pressing him on Cook Inlet gas development and how the state collects what it is owed from oil companies. Senators focused on Crowther's plans to make gas producers meet their development promises in Cook Inlet, where supply shortages have contributed to higher heating bills for Anchorage and Kenai Peninsula residents. Crowther said the state is working with operators including Hilcorp and Hex Fury, telling the committee that "we have seen an uptick in development wells" and that Hilcorp has planned "one of their busiest drilling seasons in several years" for this summer. The nominee acknowledged the Cosmopolitan unit is "in default" for failing to meet development requirements. He told senators the operator must either fix the problem or "the state will pursue its remedies as aggressively as possible." Senator Scott Kawasaki raised concerns about poor coordination between DNR and the Department of Revenue on oil and gas issues. He described situations when "DNR will say, well, that is a matter for revenue" and vice versa, according to Kawasaki. Crowther promised better cooperation between agencies and faster responses to legislative requests for information. The committee also discussed ongoing disputes over Trans-Alaska Pipeline royalty payments. Some senators suggested the state has been underpaid "tens of millions of dollars." Crowther also addressed the stalled Jonesville regulations, which have been under development since 2018 as the state works to establish rules for coal mining in the area. Crowther, who has a law degree but is not licensed to practice in Alaska, said his federal government experience would help navigate state-federal land and resource issues. The committee did not vote on his nomination during the hearing. The full Senate must confirm Crowther before he can officially take over the department that manages Alaska's oil, gas, mining and timber resources.