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CSHB 16(O&G): "An Act amending, for purposes of the Alaska Stranded Gas Development Act, the standards applicable to determining whether a proposed new investment constitutes a qualified project, the standards used to determine whether a person or group qualifies as a project sponsor or project sponsor group, and the deadline for applications relating to the development of contracts for payments in lieu of taxes and for royalty adjustments that may be submitted for consideration, and modifying the conditions bearing on the use of independent contractors to evaluate applications or to develop contract terms; and providing for an effective date."

00                       CS FOR HOUSE BILL NO. 16(O&G)                                                                     
01 "An Act amending, for purposes of the Alaska Stranded Gas Development Act, the                                          
02 standards applicable to determining whether a proposed new investment constitutes a                                     
03 qualified project, the standards used to determine whether a person or group qualifies                                  
04 as a project sponsor or project sponsor group, and the deadline for applications relating                               
05 to the development of contracts for payments in lieu of taxes and for royalty                                           
06 adjustments that may be submitted for consideration, and modifying the conditions                                       
07 bearing on the use of independent contractors to evaluate applications or to develop                                    
08 contract terms; and providing for an effective date."                                                                   
09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
10    * Section 1.  AS 43.82.100 is amended to read:                                                                     
11            Sec. 43.82.100.  Qualified project.  Based on information available to the                                 
12       commissioner, the commissioner may determine that a proposal for new investment is                                
01       a qualified project under this chapter [ONLY] if the project                                                      
02                 (1)  principally involves                                                                           
03                      (A)  the transportation of natural gas by pipeline to one or                                   
04            more markets, together with any associated processing or treatment;                                      
05                      (B)  [IS A PROJECT FOR] the export of liquefied natural gas                                    
06            from the state to one or more other states or countries; or                                              
07                      (C)  any other technology that commercializes the shipment                                     
08            of natural gas within the state or from the state to one or more other states                            
09            or countries;                                                                                            
10                 (2)  would produce at least 500,000,000,000 cubic feet of stranded gas                                  
11       within 20 years from the commencement of commercial operations; and                                               
12                 (3)  is capable, subject to applicable commercial regulation and                                        
13       technical and economic considerations, of making gas available to meet the reasonably                             
14       foreseeable demand in this state for gas within the economic proximity of the project.                            
15    * Sec. 2.  AS 43.82.110 is amended to read:                                                                        
16            Sec. 43.82.110.  Qualified sponsor or qualified sponsor group.  The                                        
17       commissioner may determine that a person or group is a qualified sponsor or qualified                             
18       sponsor group if the person or a member of the group                                                              
19                 (1)  intends to own an equity interest in a qualified project, intends to                               
20       commit gas that it owns to a qualified project, or holds the permits that the department                          
21       determines are essential to construct and operate a qualified project; and                                        
22                 (2)  meets one or more of the following criteria:                                                       
23                      (A)  owns a working interest in at least 10 percent of the                                         
24            stranded gas proposed to be developed by a qualified project;                                                
25                      (B)  has the right to purchase at least 10 percent of the stranded                                 
26            gas proposed to be developed by a qualified project;                                                         
27                      (C)  has the right to acquire, control, or market at least 10                                      
28            percent of the stranded gas proposed to be developed by a qualified project;                                 
29                      (D)  has a net worth equal to at least 15 [33] percent of the                                  
30            estimated cost of constructing a qualified project;                                                          
31                      (E)  has an unused line of credit equal to at least 25 percent of                                  
01            the estimated cost of constructing a qualified project.                                                      
02    * Sec. 3.  AS 43.82.170 is amended to read:                                                                        
03            Sec. 43.82.170.  Application deadline.  The commissioner of revenue or the                                 
04       commissioner of natural resources may not act on an application for a contract                                    
05       submitted under AS 43.82.120 unless the application is received by the Department of                              
06       Revenue no later than June 30, 2004 [2001].                                                                   
07    * Sec. 4.  AS 43.82.240(a) is amended to read:                                                                     
08            (a)  The commissioner may use independent contractors [AN                                                
09       INDEPENDENT CONTRACTOR] to assist in the evaluation of an application or in                                       
10       the development of contract terms under AS 43.82.200. The commissioner may                                        
11       condition the development of a contract under AS 43.82.020 on an agreement by the                                 
12       applicant to reimburse the state for the reasonable, nonredundant expenses of                                 
13       independent contractors [AN INDEPENDENT CONTRACTOR] under this section.                                       
14       A reimbursement of expenses that is required in an agreement authorized by this                               
15       subsection may not exceed $1,500,000 for each application.                                                    
16    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).