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.