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CSHB 9(RES): "An Act relating to the Alaska Gasline Development Corporation, a subsidiary created by the Alaska Housing Finance Corporation; establishing and relating to the in-state natural gas pipeline fund; making certain information provided to or by the Alaska Gasline Development Corporation exempt from inspection as a public record; relating to the Joint In-State Gasline Development Team; relating to the judicial review of a right-of-way lease or the development or construction of an oil or gas pipeline on state land; relating to the lease of a right-of-way by the Alaska Gasline Development Corporation for a gas pipeline transportation corridor; relating to the cost of natural resources, permits, and leases provided to the Alaska Gasline Development Corporation; relating to the review of natural gas transportation contracts by the Regulatory Commission of Alaska; relating to the regulation by the Regulatory Commission of Alaska of an in-state gas pipeline project developed by the Alaska Gasline Development Corporation; relating to the Alaska Natural Gas Development Authority; relating to the procurement of certain services by the Alaska Natural Gas Development Authority; exempting property of a project developed by the Alaska Gasline Development Corporation from property taxes before the commencement of commercial operations; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 9(RES) 01 "An Act relating to the Alaska Gasline Development Corporation, a subsidiary created 02 by the Alaska Housing Finance Corporation; establishing and relating to the in-state 03 natural gas pipeline fund; making certain information provided to or by the Alaska 04 Gasline Development Corporation exempt from inspection as a public record; relating 05 to the Joint In-State Gasline Development Team; relating to the judicial review of a 06 right-of-way lease or the development or construction of an oil or gas pipeline on state 07 land; relating to the lease of a right-of-way by the Alaska Gasline Development 08 Corporation for a gas pipeline transportation corridor; relating to the cost of natural 09 resources, permits, and leases provided to the Alaska Gasline Development 10 Corporation; relating to the review of natural gas transportation contracts by the 11 Regulatory Commission of Alaska; relating to the regulation by the Regulatory 12 Commission of Alaska of an in-state gas pipeline project developed by the Alaska

01 Gasline Development Corporation; relating to the Alaska Natural Gas Development 02 Authority; relating to the procurement of certain services by the Alaska Natural Gas 03 Development Authority; exempting property of a project developed by the Alaska 04 Gasline Development Corporation from property taxes before the commencement of 05 commercial operations; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 18.56 is amended by adding a new section to read: 08 Sec. 18.56.087. Alaska Gasline Development Corporation. (a) The Alaska 09 Gasline Development Corporation, a subsidiary created under AS 18.56.086, shall 10 have all powers granted to it by the corporation. The Alaska Gasline Development 11 Corporation shall, to the fullest extent possible, advance an in-state natural gas 12 pipeline as described in the July 1, 2011, project plan prepared under AS 38.34.040 by 13 the Alaska Gasline Development Corporation and the Joint In-State Gasline 14 Development Team, with modifications determined by the Alaska Gasline 15 Development Corporation to be necessary to construct and operate an in-state natural 16 gas pipeline in a safe and economic manner. In addition to the powers granted to it by 17 the corporation, the Alaska Gasline Development Corporation may 18 (1) determine the form of ownership and the operating structure of an 19 in-state natural gas pipeline developed by the Alaska Gasline Development 20 Corporation and may enter into agreements with other persons for joint ownership or 21 operation or both of the in-state natural gas pipeline; 22 (2) exercise the power of eminent domain or file a declaration of 23 taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is 24 necessary for an in-state natural gas pipeline; the exercise of powers by the Alaska 25 Gasline Development Corporation under this paragraph may not exceed the 26 permissible exercise of the powers by the state; 27 (3) acquire, by purchase, lease, or gift, land, structures, real or personal 28 property, an interest in property, a right-of-way, a franchise, an easement, other 29 interest in land, or an interest in or right to capacity in any pipeline system determined

01 to be necessary or convenient for the development, financing, construction, or 02 operation of an in-state natural gas pipeline project or part of an in-state natural gas 03 pipeline project; and 04 (4) transfer or otherwise dispose of all or part of an in-state natural gas 05 pipeline project developed by the Alaska Gasline Development Corporation or transfer 06 or otherwise dispose of an interest in an asset of the Alaska Gasline Development 07 Corporation. 08 (b) Upon commencement of construction of an in-state natural gas pipeline, 09 the Alaska Gasline Development Corporation shall analyze additional natural gas 10 pipelines connecting to industrial, residential, or utility customers in other regions of 11 the state. If the Alaska Gasline Development Corporation finds that a natural gas 12 pipeline analyzed under this subsection is in the best interest of the state and can meet 13 the needs of industrial, residential, or utility customers at commercially reasonable 14 rates, the Alaska Gasline Development Corporation shall finance, construct, or operate 15 the natural gas pipeline as necessary, subject to appropriation. When developing or 16 constructing an additional natural gas pipeline, the Alaska Gasline Development 17 Corporation shall, to the maximum extent feasible, use existing land, structures, real or 18 personal property, rights-of-way, easements, or other interests in land acquired by the 19 Alaska Gasline Development Corporation or the Alaska Natural Gas Development 20 Authority. 21 (c) The Alaska Gasline Development Corporation may issue bonds and notes 22 and otherwise incur indebtedness in order to carry out and accomplish its purposes. 23 The provisions of AS 18.56.110(a) - (f) and 18.56.115 - 18.56.190 apply to the Alaska 24 Gasline Development Corporation in the exercise of its powers under this subsection, 25 except that, in AS 18.56.110 - 18.56.190, as applicable under this subsection, the term 26 "corporation" shall mean the Alaska Gasline Development Corporation. The Alaska 27 Gasline Development Corporation may issue bonds and notes and otherwise incur 28 indebtedness under this subsection without limit as to principal amount. The bonds, 29 notes, and other indebtedness of the Alaska Gasline Development Corporation do not 30 create an obligation or liability of the corporation except to the extent that the 31 corporation agrees in writing to accept the obligation or liability.

01 (d) No debt, obligation, or liability of the Alaska Gasline Development 02 Corporation shall become a debt, obligation, or liability of the state or any part or 03 subdivision of the state or of the corporation or a subsidiary corporation of the 04 corporation other than the Alaska Gasline Development Corporation, except as 05 provided in this subsection. This subsection applies to all debt, obligations, and 06 liabilities of the Alaska Gasline Development Corporation regardless of how the debt, 07 obligations, or liabilities are created, including by contract, tort, or bond or note 08 issuance. Except as provided in this subsection, a person may not bring suit against the 09 state or any part or subdivision of the state or against the corporation or a subsidiary 10 corporation of the corporation other than the Alaska Gasline Development 11 Corporation in the courts of the state to enforce or seek a remedy with respect to a 12 debt, obligation, or liability of the Alaska Gasline Development Corporation. The 13 corporation may waive, in whole or in part, the application of the provisions of this 14 subsection to the corporation with respect to a debt, obligation, or liability of the 15 Alaska Gasline Development Corporation. To be effective, a waiver by the 16 corporation must be in writing and shall only have effect to the extent provided in the 17 writing. 18 (e) In the exercise of its powers under (c) and (d) of this section, the Alaska 19 Gasline Development Corporation may not pledge the faith and credit of the state or a 20 political subdivision of the state other than the Alaska Gasline Development 21 Corporation to the repayment of the principal of or interest on any bonds issued by the 22 Alaska Gasline Development Corporation. 23 (f) The in-state natural gas pipeline fund is established in the Alaska Gasline 24 Development Corporation and consists of money appropriated to it. Unless otherwise 25 provided by law, money appropriated to the fund lapses into the general fund on the 26 day this subsection is repealed. The Alaska Gasline Development Corporation shall 27 manage and invest the fund to yield competitive market rates. The Alaska Gasline 28 Development Corporation shall invest money in the fund in the same manner and on 29 the same conditions as permitted for investment by the commissioner of revenue of 30 funds belonging to the state or held in the treasury under AS 37.10.070 and as 31 provided for fiduciaries of state funds under AS 37.10.071. Interest and other income

01 received on money in the fund shall be separately accounted for and may be 02 appropriated to the fund. The Alaska Gasline Development Corporation may use 03 money appropriated to the fund for the planning, designing, financing, development, 04 construction, and operation of an in-state natural gas pipeline. 05 (g) If commitments to acquire firm transportation capacity are received in an 06 open season conducted by the Alaska Gasline Development Corporation, the Alaska 07 Gasline Development Corporation shall, within 10 days after executing the 08 commitments, report the results of the open season to the president of the senate and 09 the speaker of the house of representatives and inform the public of the results of the 10 open season through publication on the Internet website of the Alaska Gasline 11 Development Corporation and in a press release or other announcement to the media. 12 The results made public must include the name of each prospective shipper, the 13 amount of capacity allocated, and the period of the commitment. 14 (h) In this section, "in-state natural gas pipeline" and "natural gas pipeline" 15 have the meanings given in AS 38.34.099. 16 * Sec. 2. AS 36.30.850(b) is amended by adding a new paragraph to read: 17 (49) contracts by the Alaska Natural Gas Development Authority 18 under AS 41.41.070(d). 19 * Sec. 3. AS 38.34.050(a) is amended to read: 20 (a) The Alaska Gasline Development Corporation [JOINT IN-STATE 21 GASLINE DEVELOPMENT TEAM] may have access to information of all state 22 agencies that is directly related to the planning, design, construction, or operation of 23 the in-state natural gas pipeline. 24 * Sec. 4. AS 38.34.050(b) is amended to read: 25 (b) All state agencies or entities shall cooperate with and, except for requests 26 from the Alaska Gasline Inducement Act coordinator (AS 43.90.250), give priority to 27 requests for information from the Alaska Gasline Development Corporation 28 [JOINT IN-STATE GASLINE DEVELOPMENT TEAM]. The Alaska Gasline 29 Development Corporation [DEVELOPMENT TEAM] shall avoid duplicating 30 studies, plans, and designs that have already been produced or otherwise obtained by 31 other state entities.

01 * Sec. 5. AS 38.34.050(c) is amended to read: 02 (c) Notwithstanding any contrary provision of law, the Department of Natural 03 Resources shall grant the Alaska Gasline Development Corporation [ALASKA 04 HOUSING FINANCE CORPORATION] a right-of-way lease under AS 38.35 for the 05 gas pipeline transportation corridor at no cost or rental fee if 06 (1) [THE CORPORATION SUBMITS] a complete right-of-way lease 07 application under AS 38.35.050 is submitted; 08 (2) the lease application is made the subject of notice and other 09 reasonable and appropriate publication requirements under AS 38.35.070; and 10 (3) the corporation that submits the application for the right-of-way 11 lease agrees to be bound by the right-of-way lease covenants set out in AS 38.35.120, 12 except for the covenants in AS 38.35.120(a)(1), (2), (5), and (7); notwithstanding 13 AS 38.35.120(b), a right-of-way lease subject to this paragraph is valid and of 14 legal effect. 15 * Sec. 6. AS 38.34.050 is amended by adding new subsections to read: 16 (e) The Alaska Gasline Development Corporation may enter into 17 confidentiality agreements necessary to acquire or provide information to carry out its 18 functions. Information acquired or provided by the Alaska Gasline Development 19 Corporation under a confidentiality agreement is not subject to disclosure under 20 AS 40.25.110. The Alaska Gasline Development Corporation may enter into 21 confidentiality agreements with a public agency, as defined in AS 40.25.220, to allow 22 release of confidential information. The portions of the records and files of a public 23 agency bound by a confidentiality agreement that reflect, incorporate, or analyze 24 information subject to a confidentiality agreement under this subsection are not public 25 records. Confidentiality agreements entered into under this subsection are valid and 26 binding against all parties in accordance with the terms of the confidentiality 27 agreement. 28 (f) Information relating to field studies conducted and other technical 29 information developed or obtained by the Alaska Gasline Development Corporation 30 that relates to the development, financing, construction, or operation of an in-state 31 natural gas pipeline project by the Alaska Gasline Development Corporation is

01 confidential and not subject to disclosure under AS 40.25.110. The Alaska Gasline 02 Development Corporation may waive the confidentiality of the information described 03 in this subsection, except for information acquired from another person that is subject 04 to a confidentiality agreement, if the waiver is in the best interest of the state and will 05 facilitate the development, financing, or construction of an in-state natural gas 06 pipeline. 07 (g) Upon request by the Alaska Gasline Development Corporation, a 08 municipality or a state entity shall provide water, sand and gravel, other 09 nonhydrocarbon natural resources, and a permit or a lease to the Alaska Gasline 10 Development Corporation at the usual and customary rates. In this subsection, "state 11 entity" means a state department, authority, or other administrative unit of the 12 executive branch of state government, a public university, or a state public 13 corporation. 14 (h) That part of the cost of providing, under (g) of this section, water, sand and 15 gravel, or other nonhydrocarbon natural resources, or of entering into a lease or 16 issuing a permit, that is borne by the Alaska Gasline Development Corporation for an 17 in-state natural gas pipeline project that is owned in whole or in part by the Alaska 18 Gasline Development Corporation may not be included in the rate base in a 19 proceeding under AS 42 or before the Federal Energy Regulatory Commission. 20 * Sec. 7. AS 38.34.099 is repealed and reenacted to read: 21 Sec. 38.34.099. Definitions. In this chapter, 22 (1) "Alaska Gasline Development Corporation" means the corporation 23 created under AS 18.56.086 that is authorized to exercise the powers and take the 24 actions described in AS 18.56.087; 25 (2) "in-state natural gas pipeline" means a natural gas pipeline for 26 transporting natural gas in the state; 27 (3) "natural gas pipeline" means all the facilities of a total system of 28 pipe for transportation of natural gas for treatment or conditioning, delivery, storage, 29 or further transportation, and including all pipe, pump and compressor stations, station 30 equipment, and all other facilities used or necessary for an integral line of pipe to carry 31 out the transportation of the gas.

01 * Sec. 8. AS 38.35.100(d) is amended to read: 02 (d) The commissioner shall include in a conditional lease each requirement 03 and condition of the covenants established under AS 38.35.120, except that, for a 04 lease entered into under AS 38.34.050(c), the covenants in AS 38.35.120(a)(1), (2), 05 (5), and (7) may not be included. The commissioner may also require that the lessee 06 agree to additional conditions that the commissioner finds to be in the public interest. 07 In place of the covenant established under AS 38.35.120(a)(9), the commissioner shall 08 require the lessee to agree that it will not transfer, assign, pledge, or dispose of in any 09 manner, directly or indirectly, its interest in a conditional right-of-way lease or a 10 pipeline subject to the conditional lease, unless the commissioner, after considering 11 the public interest and issuing written findings to substantiate a decision to allow the 12 transfer, authorizes the transfer. The commissioner shall also require the lessee to 13 agree not to allow the transfer of control of the lessee without the approval of the 14 commissioner; as used in this subsection, "transfer of control of the lessee" means the 15 transfer of 30 percent or more, in the aggregate, of ownership interest in the lessee in 16 one or more transactions to one or more persons by one or more persons. 17 * Sec. 9. AS 38.35.120(a) is amended to read: 18 (a) Except as provided in AS 38.34.050(c), a [A] noncompetitive lease of 19 state land for a right-of-way for an oil or natural gas pipeline valued at $1,000,000 or 20 more may be granted only upon the condition that the lessee expressly covenants in 21 the lease, in consideration of the rights acquired by it under the lease, that 22 (1) it assumes the status of and will perform all of its functions 23 undertaken under the lease as a common carrier and will accept, convey, and transport 24 without discrimination crude oil or natural gas, depending on the kind of pipeline 25 involved, delivered to it for transportation from fields in the vicinity of the pipeline 26 subject to the lease throughout its route both on state land obtained under the lease and 27 on the other land; it will accept, convey, and transport crude oil or natural gas without 28 unjust or unreasonable discrimination in favor of one producer or person, including 29 itself, as against another but will take the crude oil or natural gas, depending on the 30 kind of pipeline involved, delivered or offered, without unreasonable discrimination, 31 that the Regulatory Commission of Alaska shall, after a full hearing with due notice to

01 the interested parties and a proper finding of facts, determine to be reasonable in the 02 performance of its duties as a common carrier; however, a lessee that owns or operates 03 a natural gas pipeline 04 (A) subject to regulation either under the Natural Gas Act (15 05 U.S.C. 717 et seq.) of the United States or by the state or political subdivisions 06 with respect to rates and charges for the sale of natural gas, is, to the extent of 07 that regulation, exempt from the common carrier requirement in this 08 paragraph; 09 (B) that is a North Slope natural gas pipeline (i) is required to 10 operate as a common carrier only with respect to the intrastate transportation of 11 North Slope natural gas, as that term is defined in AS 42.06.630, and (ii) is not 12 required to operate as a common carrier as to a liquefied natural gas facility or 13 a marine terminal facility associated with the pipeline, and is not otherwise 14 required to perform its functions under the lease as a common carrier; for 15 purposes of this subparagraph, "North Slope natural gas pipeline" means all the 16 facilities of a total system of pipe, whether owned or operated under a contract, 17 agreement, or lease, used by a carrier for transportation of North Slope natural 18 gas, as defined by AS 42.06.630, for delivery, for storage, or for further 19 transportation, and including all pipe, pump, or compressor stations, station 20 equipment, tanks, valves, access roads, bridges, airfields, terminals and 21 terminal facilities, including docks and tanker loading facilities, operations 22 control centers for both the upstream part of the pipeline and the terminal, 23 tanker ballast treatment facilities, fire protection system, communication 24 system, and all other facilities used or necessary for an integral line of pipe, 25 taken as a whole, to carry out transportation, including an extension or 26 enlargement of the line; 27 (2) it will interchange crude oil or natural gas, depending on the kind 28 of pipeline involved, with each like common carrier and provide connections and 29 facilities for the interchange of crude oil or natural gas at every locality reached by 30 both pipelines when the necessity exists, subject to rates and regulations made by the 31 appropriate state or federal regulatory agency;

01 (3) it will maintain and preserve books, accounts, and records and will 02 make those reports that the state may prescribe by regulation or law as necessary and 03 appropriate for purposes of administration of this chapter; 04 (4) it will accord at all reasonable times to the state and its authorized 05 agents and auditors the right of access to its property and records, of inspection of its 06 property, and of examination and copying of records; 07 (5) it will provide connections, as determined by the Regulatory 08 Commission of Alaska under AS 42.06.340, to facilities on the pipeline subject to the 09 lease, both on state land and other land in the state, for the purpose of delivering crude 10 oil or natural gas, depending on the kind of pipeline involved, to persons (including 11 the state and its political subdivisions) contracting for the purchase at wholesale of 12 crude oil or natural gas transported by the pipeline when required by the public 13 interest; 14 (6) it shall, notwithstanding any other provision, provide connections 15 and interchange facilities at state expense at such places the state considers necessary 16 if the state determines to take a portion of its royalty or taxes in oil or natural gas; 17 (7) it will construct and operate the pipeline in accordance with 18 applicable state laws and lawful regulations and orders of the Regulatory Commission 19 of Alaska; 20 (8) it will, at its own expense, during the term of the lease, 21 (A) maintain the leasehold and pipeline in good repair; 22 (B) promptly repair or remedy any damage to the leasehold; 23 (C) promptly compensate for any damage to or destruction of 24 property for which the lessee is liable resulting from damage to or destruction 25 of the leasehold or pipeline; 26 (9) it will not transfer, assign, or dispose of in any manner, directly or 27 indirectly, or by transfer of control of the carrier corporation, its interest in a right-of- 28 way lease, or any rights under the lease or any pipeline subject to the lease to any 29 person other than another owner of the pipeline (including subsidiaries, parents, and 30 affiliates of the owners), except to the extent that the commissioner, after 31 consideration of the protection of the public interest (including whether the proposed

01 transferee is fit, willing, and able to perform the transportation or other acts proposed 02 in a manner that will reasonably protect the lives, property, and general welfare of the 03 people of Alaska), authorizes; the commissioner shall not unreasonably withhold 04 consent to the transfer, assignment, or disposal; 05 (10) it will file with the commissioner a written appointment of a 06 named permanent resident of the state to be its registered agent in the state and to 07 receive service of notices, regulations, decisions, and orders of the commissioner; if it 08 fails to appoint an agent for service, service may be made by posting a copy in the 09 office of the commissioner, filing a copy in the office of the lieutenant governor, and 10 mailing a copy to the lessee's last known address; 11 (11) the applicable law of this state will be used in resolving questions 12 of interpretation of the lease; 13 (12) the granting of the right-of-way lease is subject to the express 14 condition that the exercise of the rights and privileges granted under the lease will not 15 unduly interfere with the management, administration, or disposal by the state of the 16 land affected by the lease, and that the lessee agrees and consents to the occupancy 17 and use by the state, its grantees, permittees, or other lessees of any part of the right- 18 of-way not actually occupied or required by the pipeline for the full and safe 19 utilization of the pipeline, for necessary operations incident to land management, 20 administration, or disposal; 21 (13) it will be liable to the state for damages or injury incurred by the 22 state caused by the construction, operation, or maintenance of the pipeline and it will 23 indemnify the state for the liabilities or damages; 24 (14) it will procure and furnish liability and property damage insurance 25 from a company licensed to do business in the state or furnish other security or 26 undertaking upon the terms and conditions the commissioner considers necessary if 27 the commissioner finds that the net assets of the lessee are insufficient to protect the 28 public from damage for which the lessee may be liable arising out of the construction 29 or operation of the pipeline. 30 * Sec. 10. AS 38.35.120(b) is amended to read: 31 (b) Except as provided in AS 38.34.050(c), for [FOR] a right-of-way lease

01 granted under this chapter for an oil or natural gas pipeline valued at $1,000,000 or 02 more to be valid and of legal effect, it must contain the terms required to be inserted 03 under the provisions of AS 38.35.110 - 38.35.140. Except as provided in 04 AS 38.34.050(c), an [AN] oil or natural gas pipeline right-of-way lease granted under 05 this chapter that does not contain the required terms is null and void and without legal 06 effect and does not vest any interest in state land or any authority in the carrier granted 07 the lease. 08 * Sec. 11. AS 38.35.140 is amended by adding a new subsection to read: 09 (c) Notwithstanding (a) and (b) of this section, a right-of-way lease shall be 10 granted without cost to or reimbursement by the Alaska Gasline Development 11 Corporation created under AS 18.56.086. 12 * Sec. 12. AS 38.35.200 is amended by adding new subsections to read: 13 (c) Except as provided for an applicant under (a) of this section, 14 notwithstanding any contrary provision of law, an action or decision of the 15 commissioner or other state officer or agency concerning the issuance or approval of a 16 necessary right-of-way, permit, lease, certificate, license, or other authorization for the 17 development, construction, or initial operation of a natural gas pipeline by the Alaska 18 Gasline Development Corporation, a subsidiary created by the Alaska Housing 19 Finance Corporation under AS 18.56.086, that uses a right-of-way subject to this 20 chapter may not be subject to judicial review, except that a claim alleging the 21 invalidity of this subsection must be brought within 60 days after the effective date of 22 this Act, and a claim alleging that an action will deny rights under the Constitution of 23 the State of Alaska must be brought within 60 days following the date of that action. A 24 claim that is not filed within the limitations established in this subsection is barred. A 25 complaint under this subsection must be filed in superior court, and the superior court 26 has exclusive jurisdiction. Notwithstanding AS 22.10.020(c), except in conjunction 27 with a final judgment on a claim filed under this subsection, the superior court may 28 not grant injunctive relief, including a temporary restraining order, preliminary 29 injunction, permanent injunction, or stay against the issuance of a necessary right-of- 30 way, permit, lease, certificate, license, or other authorization for the development, 31 construction, or initial operation of a natural gas pipeline by the Alaska Gasline

01 Development Corporation, a subsidiary created by the Alaska Housing Finance 02 Corporation under AS 18.56.086. In this subsection, "natural gas pipeline" has the 03 meaning given in AS 38.34.099. 04 (d) An appeal of a permitting decision by the Department of Environmental 05 Conservation under AS 46.03 or AS 46.14 that is made under authority delegated to 06 the Department of Environmental Conservation by the United States Environmental 07 Protection Agency is not 08 (1) subject to the limitation in (a) of this section; 09 (2) included in the actions or decisions described in (c) of this section. 10 * Sec. 13. AS 40.25.120(a) is amended to read: 11 (a) Every person has a right to inspect a public record in the state, including 12 public records in recorders' offices, except 13 (1) records of vital statistics and adoption proceedings, which shall be 14 treated in the manner required by AS 18.50; 15 (2) records pertaining to juveniles unless disclosure is authorized by 16 law; 17 (3) medical and related public health records; 18 (4) records required to be kept confidential by a federal law or 19 regulation or by state law; 20 (5) to the extent the records are required to be kept confidential under 21 20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure 22 or retain federal assistance; 23 (6) records or information compiled for law enforcement purposes, but 24 only to the extent that the production of the law enforcement records or information 25 (A) could reasonably be expected to interfere with enforcement 26 proceedings; 27 (B) would deprive a person of a right to a fair trial or an 28 impartial adjudication; 29 (C) could reasonably be expected to constitute an unwarranted 30 invasion of the personal privacy of a suspect, defendant, victim, or witness; 31 (D) could reasonably be expected to disclose the identity of a

01 confidential source; 02 (E) would disclose confidential techniques and procedures for 03 law enforcement investigations or prosecutions; 04 (F) would disclose guidelines for law enforcement 05 investigations or prosecutions if the disclosure could reasonably be expected to 06 risk circumvention of the law; or 07 (G) could reasonably be expected to endanger the life or 08 physical safety of an individual; 09 (7) names, addresses, and other information identifying a person as a 10 participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the 11 advance college tuition savings program under AS 14.40.803 - 14.40.817; 12 (8) public records containing information that would disclose or might 13 lead to the disclosure of a component in the process used to execute or adopt an 14 electronic signature if the disclosure would or might cause the electronic signature to 15 cease being under the sole control of the person using it; 16 (9) reports submitted under AS 05.25.030 concerning certain 17 collisions, accidents, or other casualties involving boats; 18 (10) records or information pertaining to a plan, program, or 19 procedures for establishing, maintaining, or restoring security in the state, or to a 20 detailed description or evaluation of systems, facilities, or infrastructure in the state, 21 but only to the extent that the production of the records or information 22 (A) could reasonably be expected to interfere with the 23 implementation or enforcement of the security plan, program, or procedures; 24 (B) would disclose confidential guidelines for investigations or 25 enforcement and the disclosure could reasonably be expected to risk 26 circumvention of the law; or 27 (C) could reasonably be expected to endanger the life or 28 physical safety of an individual or to present a real and substantial risk to the 29 public health and welfare; 30 (11) the written notification regarding a proposed regulation provided 31 under AS 24.20.105 to the Department of Law and the affected state agency and

01 communications between the Legislative Affairs Agency, the Department of Law, and 02 the affected state agency under AS 24.20.105; 03 (12) records that are 04 (A) proprietary, privileged, or a trade secret in accordance with 05 AS 43.90.150 or 43.90.220(e); 06 (B) applications that are received under AS 43.90 until notice is 07 published under AS 43.90.160; 08 (13) information that is covered by a confidentiality agreement 09 between the Alaska Gasline Development Corporation created under 10 AS 18.56.086 and the provider or recipient of the information. 11 * Sec. 14. AS 41.41.010(a) is amended to read: 12 (a) There is established the Alaska Natural Gas Development Authority, the 13 purpose of which is to provide one or more of the following services and functions in 14 order to acquire [BRING] natural gas produced in [FROM THE NORTH SLOPE 15 OR OTHER REGIONS OF] the state for delivery to market, including 16 [(1)] the acquisition and conditioning of natural gas [; 17 (2) THE DESIGN AND CONSTRUCTION OF THE PIPELINE 18 SYSTEM; 19 (3) THE OPERATION AND MAINTENANCE OF THE PIPELINE 20 SYSTEM; 21 (4) THE DESIGN, CONSTRUCTION, AND OPERATION OF 22 OTHER FACILITIES NECESSARY FOR DELIVERING THE GAS TO MARKET, 23 INCLUDING MARKETS IN THE STATE;] and 24 [(5)] the acquisition of natural gas market share sufficient to ensure the 25 long-term feasibility of pipeline system projects. 26 * Sec. 15. AS 41.41.010(d) is amended to read: 27 (d) The acquisition of natural gas from the North Slope and other regions of 28 the state, including the Alaska outer continental shelf, and making that natural gas 29 available to [ITS DELIVERY TO MARKETS IN THE STATE FOR USE BY] 30 markets in the state or for export from the state [TO TIDEWATER FOR 31 SHIPMENT TO MARKET BY THE AUTHORITY] are essential government

01 functions of the state. 02 * Sec. 16. AS 41.41.010 is amended by adding a new subsection to read: 03 (f) To honor delivery commitments in a contract entered into by the authority, 04 the authority and the commissioner of natural resources may pledge, as necessary, 05 royalty gas owned by the state and not otherwise committed by contract to other 06 purchasers of royalty gas. The commissioner of natural resources shall determine the 07 amount of gas that may be pledged and the price for that gas. 08 * Sec. 17. AS 41.41.020 is repealed and reenacted to read: 09 Sec. 41.41.020. Authority governing body. The authority shall be governed 10 by the board of directors of the Alaska Housing Finance Corporation. 11 * Sec. 18. AS 41.41.060 is amended to read: 12 Sec. 41.41.060. Compensation of board members; per diem and travel 13 expenses. Members of the board described in AS 18.56.030(a)(4) are entitled to 14 compensation and reimbursement as provided in AS 18.56.030(e) when on official 15 business of the authority [PER DIEM AND TRAVEL EXPENSES AUTHORIZED 16 FOR BOARDS AND COMMISSIONS UNDER AS 39.20.180]. 17 * Sec. 19. AS 41.41.070(d) is amended to read: 18 (d) In addition to its employees, the authority may contract for and engage the 19 services of [BOND COUNSEL,] consultants, experts, [AND] financial advisors, and 20 legal counsel, including bond counsel, the authority considers necessary for the 21 purpose of developing information, furnishing advice, or conducting studies, 22 investigations, hearings, or other proceedings. The procurement of services under 23 this subsection is exempt from AS 36.30, including AS 36.30.015(d) and (f). 24 * Sec. 20. AS 41.41.090(b) is amended to read: 25 (b) If a member of the board or an employee of the authority acquires, owns, 26 or controls an interest, direct or indirect, in an entity [OR PROJECT] in which assets 27 of the authority are invested, the member shall immediately disclose the interest to the 28 board. The disclosure is a matter of public record and shall be included in the minutes 29 of the first board meeting following the disclosure. 30 * Sec. 21. AS 41.41.150(a) is amended to read: 31 (a) Information in the possession of the authority is a public record, except

01 that information that is contained in or subject to a confidentiality agreement 02 between the authority and the Alaska Gasline Development Corporation or that 03 discloses the particulars of the business or affairs of a private enterprise or investor is 04 confidential and is not a public record for purposes of AS 40.25.110 - 40.25.140. 05 Confidential information may be disclosed only for the purposes of an official law 06 enforcement investigation or when its production is required in a court proceeding. 07 * Sec. 22. AS 41.41.200 is amended to read: 08 Sec. 41.41.200. Powers of the authority. In furtherance of its corporate 09 purposes, in addition to its other powers, the authority may 10 (1) sue and be sued; 11 (2) adopt a seal; 12 (3) adopt, amend, and repeal bylaws and regulations; 13 (4) make and execute contracts and other instruments; 14 (5) in its own name acquire property, lease, rent, convey, or acquire 15 real and personal property [; A PROJECT SITE OR PART OF A PROJECT SITE 16 MAY BE ACQUIRED BY EMINENT DOMAIN]; 17 (6) acquire natural gas supplies; 18 (7) issue bonds and otherwise incur indebtedness in accordance with 19 AS 41.41.300 - 41.41.410 in order to pay the cost of a project; 20 (8) accept gifts, grants, or loans from and enter into contracts or other 21 transactions regarding gifts, grants, or loans with a federal agency or an agency or 22 instrumentality of the state, a municipality, private organization, or other source; 23 (9) enter into contracts or agreements with a federal agency, agency or 24 instrumentality of the state, municipality, or public or private individual or entity, with 25 respect to the exercise of its powers; 26 (10) charge fees or other forms of remuneration for the use of authority 27 properties and facilities; 28 (11) defend and indemnify a current or former member of the board or 29 an employee or agent of the authority against the costs, expenses, judgments, and 30 liabilities as a result of actions taken in good faith on behalf of the authority; and 31 (12) purchase insurance to protect its assets, services, and employees

01 against liabilities that may arise from authority operations and activities. 02 * Sec. 23. AS 41.41.990(2) is amended to read: 03 (2) "board" means the board of directors of the Alaska Housing 04 Finance Corporation acting as the board of the Alaska Natural Gas Development 05 Authority; 06 * Sec. 24. AS 42.05 is amended by adding a new section to read: 07 Sec. 42.05.433. Review of certain contracts by the commission. (a) A public 08 utility negotiating a contract with the Alaska Gasline Development Corporation 09 created under AS 18.56.086, or with any entity controlled by the Alaska Gasline 10 Development Corporation, shall submit the contract to the commission before the 11 contract takes effect. 12 (b) A public utility negotiating to purchase natural gas to be shipped on any 13 pipeline owned by either the Alaska Gasline Development Corporation or an entity 14 controlled by the Alaska Gasline Development Corporation shall submit the contract 15 to the commission before the contract takes effect. 16 (c) A public utility negotiating a natural gas storage contract related to (a) or 17 (b) of this section shall submit the contract to the commission before the contract takes 18 effect. 19 (d) The commission shall review and may conduct an investigation and 20 hearing to determine whether a contract submitted under (a), (b), or (c) of this section 21 is just and reasonable. The commission shall either approve the contract as presented, 22 or, if the commission finds that the contract is unjust, unreasonable, or unduly 23 discriminatory or preferential, the commission shall disapprove the contract. If the 24 commission does not act within 180 days after the submission of the contract, the 25 contract shall be considered approved and shall be implemented. A contract that is 26 approved or considered approved under this subsection is not subject to further review 27 by the commission. 28 (e) Before the start of construction of a natural gas pipeline by the Alaska 29 Gasline Development Corporation or an entity controlled by the Alaska Gasline 30 Development Corporation, the Alaska Gasline Development Corporation shall submit 31 to the commission under seal any firm transportation precedent agreement it has

01 negotiated with an entity that is not a public utility. Notwithstanding AS 40.25.110 02 and AS 42.05.671(a), the commission shall keep an agreement submitted under this 03 subsection confidential. 04 (f) The commission shall review each agreement submitted under (e) of this 05 section and compare the firm transportation rates in the agreement to the weighted- 06 average of the firm transportation rates contained in the firm transportation contracts 07 submitted under (a) of this section that were approved under (d) of this section. The 08 transportation rates in the contracts submitted under (a) of this section shall be 09 weighted by volume for purposes of the comparison. The commission shall approve 10 by order an agreement submitted under (e) of this section if the firm transportation 11 rates are equal to or less than the weighted-average firm transportation rates in 12 contracts submitted under (a) of this section and approved under (d) of this section. 13 The commission shall disapprove by order an agreement submitted under (e) of this 14 section if the firm transportation rates are greater than the weighted-average firm 15 transportation rate in contracts submitted under (a) of this section and approved under 16 (d) of this section. If the commission has not disapproved an agreement submitted 17 under (e) of this section within 30 days after the submission of the agreement, the 18 agreement shall be considered approved and shall take effect immediately. A firm 19 transportation precedent agreement that is approved under this subsection is not 20 subject to further review by the commission. 21 * Sec. 25. AS 42.05.711 is amended by adding a new subsection to read: 22 (s) Except for the review of a contract for the transportation of natural gas 23 under AS 42.05.433, the Alaska Gasline Development Corporation created under 24 AS 18.56.086, a joint venture, partnership, or other entity controlled by the Alaska 25 Gasline Development Corporation, or a natural gas pipeline owned or financed by the 26 Alaska Gasline Development Corporation is exempt from this chapter until all debt 27 incurred to finance or refinance the cost of developing and constructing the natural gas 28 pipeline is paid in full. However, the Alaska Gasline Development Corporation or a 29 joint venture, partnership, or other entity that includes the Alaska Gasline 30 Development Corporation may elect to be subject to regulation under this chapter to 31 the extent and in the manner the Alaska Gasline Development Corporation elects and

01 determines is appropriate. 02 * Sec. 26. AS 42.06 is amended by adding a new section to article 7 to read: 03 Sec. 42.06.601. Exemption. The Alaska Gasline Development Corporation 04 created under AS 18.56.086, an entity controlled by the Alaska Gasline Development 05 Corporation, or a natural gas pipeline owned, operated, financed, or controlled, in 06 whole or in part, by the Alaska Gasline Development Corporation is not subject to this 07 chapter except to the extent and in the manner the Alaska Gasline Development 08 Corporation elects and determines is appropriate. 09 * Sec. 27. AS 43.56.020 is amended by adding a new subsection to read: 10 (d) Taxable property of a natural gas pipeline project owned or financed by 11 the Alaska Gasline Development Corporation established under AS 18.56.086, or a 12 joint venture, partnership, or other entity that includes the Alaska Gasline 13 Development Corporation, is exempt from state taxes levied or authorized under 14 AS 43.56.010(a) and local taxes levied or authorized under AS 43.56.010(b) before 15 the commencement of commercial operations of that natural gas pipeline project. In 16 this subsection, "commencement of commercial operations" means the first flow of 17 natural gas in the project that generates revenue to the owners of the natural gas 18 pipeline project. 19 * Sec. 28. AS 38.34.030, 38.34.040, 38.34.060; AS 41.41.030, 41.41.040, AS 41.41.050, 20 and 41.41.080 are repealed. 21 * Sec. 29. Section 1, 2002 Ballot Measure No. 3, is repealed. 22 * Sec. 30. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITION AND LEGISLATIVE INTENT. It is the intent of the legislature that a 25 right-of-way lease subject to AS 38.34.050(c), as amended by sec. 5 of this Act, 26 AS 38.35.100(d), as amended by sec. 8 of this Act, AS 38.35.120(a), as amended by sec. 9 of 27 this Act, and AS 38.35.120(b), as amended by sec. 10 of this Act, that is entered into between 28 the commissioner of natural resources and the Alaska Gasline Development Corporation, a 29 subsidiary of the Alaska Housing Finance Corporation created under AS 18.56.086, before the 30 effective dates of secs. 5 and 8 - 10 of this Act be amended as soon as practicable after the 31 effective dates of secs. 5 and 8 - 10 of this Act to conform to the requirements of

01 AS 38.34.050(c), as amended by sec. 5 of this Act, AS 38.35.100(d), as amended by sec. 8 of 02 this Act, AS 38.35.120(a), as amended by sec. 9 of this Act, and AS 38.35.120(b), as amended 03 by sec. 10 of this Act. 04 * Sec. 31. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 REVISOR'S INSTRUCTIONS. The revisor of statutes shall change the catch lines of 07 (1) AS 38.34.050 from "Cooperation and access to information" to 08 "Cooperation; information sharing; permits, use of state resources, and leases"; and 09 (2) AS 38.35.200 from "Judicial review of decisions of commissioner on 10 application" to "Judicial review." 11 * Sec. 32. This Act takes effect immediately under AS 01.10.070(c).