00                            SENATE BILL NO. 143                                                                         
01 "An Act authorizing the Department of Natural Resources to enter into agreements with                                   
02 a person or persons desiring to own an oil or natural gas pipeline proposed to be located                               
03 on state land for the purposes of providing for payment of the reasonable costs incurred                                
04 in preparing for activities before receipt of an application under the Alaska Right-of-                                 
05 Way Leasing Act and for activities relating to the processing of an application under                                   
06 that Act; and providing for an effective date."                                                                         
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1.  AS 38.35.140(b) is amended to read:                                                                  
09            (b)  The lease applicant or lessee shall reimburse the state for all reasonable                          
10       costs incurred in processing an application filed under AS 38.35.050 and in                                       
11       monitoring the construction of the pipeline on the right-of-way.                                                  
12    * Sec. 2.  AS 38.35 is amended by adding a new section to read:                                                    
13            Sec. 38.35.145.  Agreement to provide for payment of preapplication costs.                                 

01       (a)  To  accommodate preliminary work in advance of the receipt of an application for                             
02       a lease under this chapter, the department may enter into an agreement with a                                     
03       prospective lessee desiring to own an oil or natural gas pipeline that is proposed to be                          
04       located in whole or in part on state land.  The agreement must provide that the                                   
05       prospective lessee reimburse the department for the reasonable costs of work incurred                             
06       in preparing for activities before receipt of an application.                                                     
07            (b)  Expenditure of amounts received by the department under (a) of this                                     
08       section is subject to appropriation by the legislature.  Appropriations made to satisfy                           
09       the requirement of (a) of this section may be made by general appropriations of                                   
10       program receipts conditioned on compliance with the program review provisions of                                  
11       AS 37.07.080(h).                                                                                                  
12            (c)  The department may not exercise authority to enter into an agreement                                    
13       under (a) of this section after December 31, 2003, but an agreement entered into                                  
14       before January 1, 2004, is valid and enforceable on and after that date.                                          
15    * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).