HB 142: "An Act relating to the creation of a rebuttable presumption that the project licensed under the Alaska Gasline Inducement Act is uneconomic because of insufficient firm transportation commitments during the first open season."
00 HOUSE BILL NO. 142 01 "An Act relating to the creation of a rebuttable presumption that the project licensed 02 under the Alaska Gasline Inducement Act is uneconomic because of insufficient firm 03 transportation commitments during the first open season." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 PRESUMPTION THAT PROJECT IS UNECONOMIC. (a) If TransCanada Alaska 08 Company, LLC, and Foothills Pipe Lines Ltd., jointly as licensee, fail to disclose, before 09 July 15, 2011, that the project licensed under AS 43.90 (Alaska Gasline Inducement Act) 10 received firm transportation commitments during the open season sufficient to support the 11 construction of the project, it is rebuttably presumed that the project is uneconomic for the 12 purposes of AS 43.90.240. The commissioners shall notify the legislature before August 1, 13 2011, whether firm transportation commitments are disclosed to the commissioners before 14 July 15, 2011, and report whether the firm commitments that are disclosed are sufficient to
01 support development of the project. 02 (b) If the presumption is raised under (a) of this section, the commissioners shall, 03 (1) before August 15, 2011, submit a report to the legislature that rebuts the 04 presumption in (a) of this section by a preponderance of evidence or state that there is 05 insufficient evidence to rebut the presumption; and 06 (2) in conjunction with the request for an appropriation for the reimbursement 07 of qualified expenditures authorized by AS 43.90.110(a)(1) for fiscal year 2013, provide 08 testimony and evidence that the 09 (A) project has credit support sufficient to finance construction of the 10 project through firm transportation commitments, government assistance, or other 11 external sources of financing; and 12 (B) predicted costs of transportation at a 100 percent load factor, when 13 deducted from predicted gas sales revenue using publicly available predictions of 14 future gas prices, would result in a producer rate of return that is not below the rate 15 typically accepted by a prudent oil and gas exploration and production company for 16 incremental upstream investment that is required to produce and deliver gas to the 17 project. 18 (c) Nothing in this section precludes an agreement between the commissioners and 19 the licensee that the project is uneconomic or a determination by the commissioners or the 20 licensee that the project is uneconomic for the purposes of AS 43.90.240. 21 (d) In this section, "commissioners," "licensee," "open season," and "project" have the 22 meanings given in AS 43.90.900.