HB 362: "An Act relating to the sale of state royalty oil and gas; and relating to recommendations by the Alaska Royalty Oil and Gas Development Advisory Board."
00 HOUSE BILL NO. 362 01 "An Act relating to the sale of state royalty oil and gas; and relating to 02 recommendations by the Alaska Royalty Oil and Gas Development Advisory Board." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.183(e) is amended to read: 05 (e) When a sale, exchange, or other disposal of oil or gas taken in kind by the 06 state as its royalty share, or a sale, exchange, or other disposal in whole or in part of a 07 right to receive future royalty oil or gas, under a state lease under this chapter is made 08 other than by competitive bid, the sale, exchange, or other disposal shall be awarded 09 by the commissioner to the prospective buyer whose proposal offers the maximum 10 benefits to citizens of the state. The commissioner shall consider the 11 (1) [THE] cash value offered; 12 (2) [THE] projected effects of the sale, exchange, or other disposal on 13 the economy of the state; 14 (3) extent to which the royalty oil or gas will be consumed in the
01 state; 02 (4) [THE] projected benefits of refining or processing the oil or gas in 03 the state; 04 (5) [(4) THE] ability of the prospective buyer to provide refined 05 products or by-products for distribution and sale in the state with price or supply 06 benefits to the citizens of the state; and 07 (6) [(5) THE] criteria listed in AS 38.06.070(a). 08 * Sec. 2. AS 38.06.070(b) is amended to read: 09 (b) When [IT IS ECONOMICALLY FEASIBLE AND] in the public interest, 10 the board may recommend to the commissioner of natural resources, as a condition of 11 the sale of oil or gas obtained by the state as royalty, that the 12 (1) [THE] oil or gas be refined or processed in the state; 13 (2) [THE] purchaser be a refiner who supplies products to the Alaska 14 market with price or supply benefits to state citizens; [OR] 15 (3) [THE] purchaser construct a processing or refining facility in the 16 state; or 17 (4) purchaser first offer the oil or gas for sale for consumption in 18 the state.