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SB 193: "An Act expanding the purpose of the Alaska Natural Gas Development Authority to include planning, developing, constructing, managing, or operating an economically viable gas pipeline project from the North Slope of Alaska by a route that parallels the Trans Alaska Pipeline System or the Alaska Highway; relating to the development plan, requiring a work plan, and relating to acquiring permits or other property by the authority for a proposed gas pipeline project; and providing for an effective date."

00 SENATE BILL NO. 193 01 "An Act expanding the purpose of the Alaska Natural Gas Development Authority to 02 include planning, developing, constructing, managing, or operating an economically 03 viable gas pipeline project from the North Slope of Alaska by a route that parallels the 04 Trans Alaska Pipeline System or the Alaska Highway; relating to the development plan, 05 requiring a work plan, and relating to acquiring permits or other property by the 06 authority for a proposed gas pipeline project; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 FINDINGS. The legislature finds that 11 (1) the Alaska Natural Gas Development Authority was created for the 12 purpose of planning, developing, constructing, managing, and operating a gas pipeline from 13 the North Slope of Alaska to tidewater at a point on Prince William Sound and a spur line to

01 the southcentral Alaska natural gas distribution grid; 02 (2) however, there may exist other economically viable projects to bring 03 Alaska gas from the North Slope to market; 04 (3) it is in the best interests of the State of Alaska to include any economically 05 viable project for consideration by the Alaska Natural Gas Development Authority by a route 06 that parallels either the Trans Alaska Pipeline System or the Alaska Highway; and 07 (4) therefore, it is in the best interests of the State of Alaska to expand the 08 purpose of the Alaska Natural Gas Development Authority to include planning, developing, 09 constructing, managing, and operating an economically viable gas pipeline from the North 10 Slope of Alaska by a route that parallels the Trans Alaska Pipeline System or the Alaska 11 Highway. 12 * Sec. 2. AS 41.41.010(d) is amended to read: 13 (d) The acquisition of natural gas from the North Slope and its delivery to 14 [TIDEWATER FOR SHIPMENT TO] market by the authority is an essential 15 government function of the state. 16 * Sec. 3. AS 41.41.450 is amended to read: 17 Sec. 41.41.450. Property of the authority. The authority may acquire, by 18 purchase, lease, or gift, upon terms that it considers proper, land; [,] structures; [,] real 19 or personal property rights; [,] rights-of-way; [,] franchises; [,] easements; federal, 20 state, or local permits; [,] and other interests in land it considers necessary or 21 convenient for the financing of the project or a part of the project. 22 * Sec. 4. AS 41.41.450 is amended by adding a new subsection to read: 23 (b) Nothing in this section requires the authority to acquire property, including 24 federal, state, or local permits, described in (a) of this section. 25 * Sec. 5. AS 41.41.990(3) is amended to read: 26 (3) "project" means the gas transmission pipeline, together with all 27 related property and facilities, to extend from the Prudhoe Bay area on the North Slope 28 of Alaska by a route that parallels the Trans Alaska Pipeline System or the 29 Alaska Highway [TO TIDEWATER AT A POINT ON PRINCE WILLIAM 30 SOUND] and a [THE] spur line [FROM GLENALLEN] to the Southcentral gas 31 distribution grid, and includes planning, design, and construction of the pipeline and

01 facilities as described in AS 41.41.010(a)(1) - (5). 02 * Sec. 6. The uncodified law of the State of Alaska enacted in sec. 5(a) of 2002 General 03 Election Ballot Measure 3 is amended to read: 04 (a) Not later than January 1, 2004, [ONE YEAR AFTER THE FIRST 05 MEETING OF] the board of directors of the Alaska Natural Gas Development 06 Authority [, THE BOARD] shall produce a work [DEVELOPMENT] plan. The 07 work [DEVELOPMENT] plan must include a detailed budget, schedule, and tasks 08 that will be required to deliver a development plan. The development plan must 09 include 10 (1) estimates of construction costs and timelines; 11 (2) gas procurement prices; 12 (3) use of the state's royalty gas; 13 (4) estimates of revenue to the general fund and the Alaska permanent 14 fund; 15 (5) a revenue sharing plan with municipal governments; 16 (6) a plan for delivery and pricing of natural gas to communities along 17 the pipeline route and to Southcentral Alaska through a spur line; 18 (7) a plan for delivery and pricing of LNG to Yukon River and coastal 19 communities; 20 (8) a payment schedule to companies providing permits or other 21 valuable assets; 22 (9) a marketing plan to approach potential buyers; 23 (10) a plan to maximize Alaskan hire, including project labor 24 agreements; and 25 (11) a plan to ensure meeting the highest environmental and safety 26 standards, including a citizens advisory council. 27 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).