SSHB 4: "An Act relating to the Alaska Gasline Development Corporation; making the Alaska Gasline Development Corporation, a subsidiary of the Alaska Housing Finance Corporation, an independent public corporation of the state; establishing and relating to the in-state natural gas pipeline fund; making certain information provided to or by the Alaska Gasline Development Corporation and its subsidiaries exempt from inspection as a public record; relating to the Joint In-State Gasline Development Team; relating to the Alaska Housing Finance Corporation; relating to the price of the state's royalty gas for certain contracts; relating to judicial review of a right-of-way lease or an action or decision related to the development or construction of an oil or gas pipeline on state land; relating to the lease of a right-of-way for a gas pipeline transportation corridor, including a corridor for a natural gas pipeline that is a contract carrier; relating to the cost of natural resources, permits, and leases provided to the Alaska Gasline Development Corporation; relating to procurement by the Alaska Gasline Development Corporation; relating to the review by the Regulatory Commission of Alaska of natural gas transportation contracts; relating to the regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline project developed by the Alaska Gasline Development Corporation; relating to the regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline that provides transportation by contract carriage; 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 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4 01 "An Act relating to the Alaska Gasline Development Corporation; making the Alaska 02 Gasline Development Corporation, a subsidiary of the Alaska Housing Finance 03 Corporation, an independent public corporation of the state; establishing and relating to 04 the in-state natural gas pipeline fund; making certain information provided to or by the 05 Alaska Gasline Development Corporation and its subsidiaries exempt from inspection as 06 a public record; relating to the Joint In-State Gasline Development Team; relating to 07 the Alaska Housing Finance Corporation; relating to the price of the state's royalty gas 08 for certain contracts; relating to judicial review of a right-of-way lease or an action or 09 decision related to the development or construction of an oil or gas pipeline on state 10 land; relating to the lease of a right-of-way for a gas pipeline transportation corridor, 11 including a corridor for a natural gas pipeline that is a contract carrier; relating to the 12 cost of natural resources, permits, and leases provided to the Alaska Gasline
01 Development Corporation; relating to procurement by the Alaska Gasline Development 02 Corporation; relating to the review by the Regulatory Commission of Alaska of natural 03 gas transportation contracts; relating to the regulation by the Regulatory Commission 04 of Alaska of an in-state natural gas pipeline project developed by the Alaska Gasline 05 Development Corporation; relating to the regulation by the Regulatory Commission of 06 Alaska of an in-state natural gas pipeline that provides transportation by contract 07 carriage; relating to the Alaska Natural Gas Development Authority; relating to the 08 procurement of certain services by the Alaska Natural Gas Development Authority; 09 exempting property of a project developed by the Alaska Gasline Development 10 Corporation from property taxes before the commencement of commercial operations; 11 and providing for an effective date." 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 13 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 14 to read: 15 LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that 16 (1) an in-state natural gas pipeline developed by the Alaska Gasline 17 Development Corporation is required for public convenience and necessity; 18 (2) the development of a natural gas pipeline by the Alaska Gasline 19 Development Corporation is in the best interest of the state; 20 (3) it is the policy of the state to make the state's share of royalty natural gas 21 available for shipment in an in-state natural gas pipeline developed by the Alaska Gasline 22 Development Corporation; 23 (4) making the Alaska Gasline Development Corporation an independent 24 public corporation of the State of Alaska located for administrative purposes under the 25 Department of Commerce, Community, and Economic Development will enhance the ability 26 of the Alaska Gasline Development Corporation to accomplish its purposes. 27 (b) It is the intent of the legislature that
01 (1) the Alaska Gasline Development Corporation, in its new placement as an 02 independent public corporation of the state, shall be treated for all purposes as the transfer of a 03 corporation within the state and not as the creation of a new entity by the State of Alaska; 04 (2) to the maximum extent permitted by law, in developing a natural gas 05 pipeline, the Alaska Gasline Development Corporation shall procure services, labor, products, 06 and natural resources from qualified businesses located in the state, including organizations 07 owned by Alaska Natives and municipal organizations directly affected by the project, if 08 those persons are competitive; and 09 (3) the Alaska Gasline Development Corporation shall, to the maximum 10 extent permitted by law, 11 (A) hire qualified residents from throughout the state for management, 12 engineering, construction, operations, maintenance, and other positions for a natural 13 gas pipeline project; 14 (B) establish hiring facilities in the state or use existing hiring facilities 15 in the state; and 16 (C) use, as far as practicable, the job centers and associated services 17 operated by the Department of Labor and Workforce Development and an Internet- 18 based labor exchange system operated by the state. 19 * Sec. 2. AS 18.56.086 is amended to read: 20 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 21 subsidiary corporations for the purpose of financing or facilitating the financing of 22 school construction, facilities for the University of Alaska, facilities for ports and 23 harbors, the acquisition, development, management, or operation of affordable 24 housing, prepayment of all or a portion of a governmental employer's share of 25 unfunded accrued actuarial liability of retirement systems, or other capital projects. [A 26 SUBSIDIARY CORPORATION MAY ALSO BE CREATED FOR THE PURPOSE 27 OF PLANNING, CONSTRUCTING, AND FINANCING IN-STATE NATURAL 28 GAS PIPELINE PROJECTS OR FOR THE PURPOSE OF AIDING IN THE 29 PLANNING, CONSTRUCTION, AND FINANCING OF IN-STATE NATURAL 30 GAS PIPELINE PROJECTS.] A subsidiary corporation created under this section 31 may be incorporated under AS 10.20.146 - 10.20.166. The corporation may transfer
01 assets of the corporation to a subsidiary created under this section. A subsidiary 02 created under this section may borrow money and issue bonds as evidence of that 03 borrowing, and has all the powers of the corporation that the corporation grants to it. 04 However, a subsidiary created for the purpose of financing or facilitating the financing 05 of prepayment of a governmental employer's share of unfunded accrued actuarial 06 liability of retirement systems may borrow money and issue bonds only if the state 07 bond rating is the equivalent of AA- or better and subject to AS 37.15.903. [A 08 SUBSIDIARY CORPORATION CREATED FOR THE PURPOSE OF PLANNING, 09 CONSTRUCTING, AND FINANCING IN-STATE NATURAL GAS PIPELINE 10 PROJECTS OR FOR THE PURPOSE OF AIDING IN THE PLANNING, 11 CONSTRUCTION, OR FINANCING OF IN-STATE NATURAL GAS PIPELINE 12 PROJECTS IS EXEMPT FROM AS 36.30, INCLUDING AS 36.30.015(d) AND (f).] 13 Unless otherwise provided by the corporation, the debts, liabilities, and obligations of 14 a subsidiary corporation created under this section are not the debts, liabilities, or 15 obligations of the corporation. 16 * Sec. 3. AS 31 is amended by adding a new chapter to read: 17 Chapter 25. Alaska Gasline Development Corporation. 18 Article 1. Organization, Administration, and Powers. 19 Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a 20 public corporation and government instrumentality located for administrative purposes 21 in the Department of Commerce, Community, and Economic Development, but 22 having a legal existence independent of and separate from the state. The corporation 23 may not be terminated as long as it has bonds, notes, or other obligations outstanding. 24 Upon termination of the corporation, its rights and property pass to the state. 25 Sec. 31.25.020. Governing body. (a) The corporation shall be governed by a 26 board of directors consisting of five members. 27 (b) Members of the board shall be appointed by the governor and are subject 28 to confirmation by the legislature. When appointing a member to the board, the 29 governor shall consider an individual's expertise and experience in natural gas pipeline 30 construction, operation and marketing; finance; large project management; and other 31 expertise and experience that is relevant to the purpose, powers, and duties of the
01 corporation. Members of the board serve staggered seven-year terms. A member may 02 be removed from office by the governor only for cause. A removal by the governor 03 must be in writing, must state the reason for the removal, and must be made available 04 to the public. A vacancy shall be filled in the same manner as the original 05 appointment. 06 (c) Notwithstanding AS 39.05.055, the terms of the initially appointed 07 members of the board shall be set by the governor to be two years for one member, 08 three years for one member, five years for one member, and seven years for two 09 members. 10 (d) The members of the board described in (a) of this section receive $400 11 compensation for each day spent on official business of the corporation and may be 12 reimbursed by the corporation for actual and necessary expenses at the same rate paid 13 to members of state boards under AS 39.20.180. 14 Sec. 31.25.030. Meetings of board. (a) The board shall elect a chair, secretary, 15 and treasurer from among its membership at each annual meeting. A majority of the 16 members constitutes a quorum for organizing the board, conducting its business, and 17 exercising the powers of the corporation. The board shall meet at the call of the chair. 18 The board shall meet at least once every three months. 19 (b) The board may meet and transact business by electronic media if 20 (1) public notice of the time and locations where the meeting will be 21 held by electronic media has been given in the same manner as if the meeting were 22 held in a single location; 23 (2) participants and members of the public in attendance can hear and 24 have the same right to participate in the meeting as if the meeting were conducted in 25 person; and 26 (3) copies of pertinent reference materials, statutes, regulations, and 27 audio-visual materials are reasonably available to participants and to the public. 28 (c) A meeting by electronic media as provided in this section has the same 29 legal effect as a meeting in person. 30 (d) For the purposes of this chapter, public notice of 24 hours or more is 31 adequate notice of a meeting of the board at which the issuance of corporation bonds
01 is authorized. 02 (e) An affirmative vote of at least three members of the board is required to 03 approve 04 (1) the sale and issuance of bonds; 05 (2) the sale or other disposition of a substantial asset or substantial 06 amount of the assets of the corporation; the corporation shall adopt a regulation that 07 defines a substantial asset and a substantial amount of assets for the purposes of this 08 paragraph; 09 (3) the ownership structure for a pipeline project of which the 10 corporation is a participant; 11 (4) an action committing the corporation to an additional natural gas 12 pipeline project; and 13 (5) action on other matters identified in a regulation adopted by the 14 corporation as being subject to this subsection. 15 Sec. 31.25.035. Minutes of meetings. The board shall keep minutes of each 16 meeting and send certified copies to the governor and to the Legislative Budget and 17 Audit Committee. 18 Sec. 31.25.040. Administration of affairs. (a) The board shall manage the 19 assets and business of the corporation and may adopt, amend, and repeal bylaws and 20 regulations governing the manner in which the business of the corporation is 21 conducted and the manner in which its powers are exercised. The board shall delegate 22 supervision of the administration of the corporation to the executive director, 23 appointed in accordance with AS 31.25.045. 24 (b) The board shall adopt and publish procedures to govern the procurement 25 by the corporation of supplies, services, professional services, and construction. 26 Sec. 31.25.045. Executive director. The corporation shall employ an 27 executive director, who may not be a member of the board. The executive director 28 shall be appointed by the board and serves at the pleasure of the board. 29 Sec. 31.25.050. Legal counsel. The corporation shall retain an attorney as 30 legal counsel for the corporation. The attorney retained by the corporation shall advise 31 the corporation in legal matters and represent it in suits.
01 Sec. 31.25.060. Employment of personnel. The board may appoint other 02 officers and engage professional and technical advisors as independent contractors. 03 The executive director may hire employees of the corporation and engage professional 04 and technical advisors under contract with the corporation. The board shall prescribe 05 the duties and compensation of corporation personnel, including the executive 06 director. 07 Sec. 31.25.065. Personnel exempt from State Personnel Act. The personnel 08 of the corporation are exempt from AS 39.25. 09 Sec. 31.25.070. Purpose. The corporation shall, to the fullest extent possible, 10 (1) advance an in-state natural gas pipeline as described in the July 1, 11 2011, project plan prepared under former AS 38.34.040 by the corporation while a 12 subsidiary of the Alaska Housing Finance Corporation, with modifications determined 13 by the corporation to be appropriate to develop, finance, construct, and operate an in- 14 state natural gas pipeline in a safe, prudent, economical, and efficient manner, for the 15 purpose of making natural gas available to Fairbanks, the Southcentral region of the 16 state, and other communities in the state at the lowest rates possible; 17 (2) endeavor to develop natural gas pipelines to deliver natural gas to 18 public utility and industrial customers in areas of the state to which the natural gas 19 may be delivered at commercially reasonable rates; and 20 (3) endeavor to develop natural gas pipelines that offer commercially 21 reasonable rates for shippers and access for shippers who produce natural gas in the 22 state. 23 Sec. 31.25.080. Powers and duties. (a) In addition to other powers granted in 24 this chapter, the corporation may 25 (1) determine the form of ownership and the operating structure of an 26 in-state natural gas pipeline developed by the corporation and may enter into 27 agreements with other persons for joint ownership, joint operation, or both of an in- 28 state natural gas pipeline; 29 (2) plan, finance, construct, develop, acquire, maintain, and operate a 30 pipeline system, including pipelines, compressors, storage facilities, and other related 31 facilities, equipment, and works of public improvement, in the state to facilitate
01 production, transportation, and delivery of natural gas or other related natural 02 resources to the point of consumption or to the point of distribution for consumption; 03 (3) lease or rent facilities, structures, and properties; 04 (4) exercise the power of eminent domain and file a declaration of 05 taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is 06 necessary for an in-state natural gas pipeline; the exercise of powers by the 07 corporation under this paragraph may not exceed the permissible exercise of the 08 powers by the state; 09 (5) acquire, by purchase, lease, or gift, land, structures, real or personal 10 property, an interest in property, a right-of-way, a franchise, an easement, or other 11 interest in land, or an interest in or right to capacity in a pipeline system determined to 12 be necessary or convenient for the development, financing, construction, or operation 13 of an in-state natural gas pipeline project or part of an in-state natural gas pipeline 14 project; 15 (6) transfer or otherwise dispose of all or part of an in-state natural gas 16 pipeline project developed by the corporation or transfer or otherwise dispose of an 17 interest in an asset of the corporation; 18 (7) elect to provide transportation of natural gas as a contract carrier, 19 common carrier, or otherwise; 20 (8) provide light, water, security, and other services for property of the 21 corporation; 22 (9) conduct hearings to gather and develop data consistent with the 23 purpose and powers of the corporation; 24 (10) advocate for new pipeline capacity before the Federal Energy 25 Regulatory Commission; 26 (11) make and execute agreements, contracts, and other instruments 27 necessary or convenient in the exercise of the powers and functions of the corporation 28 under this chapter, including a contract with a person, firm, corporation, governmental 29 agency, or other entity; 30 (12) sue and be sued in its own name; 31 (13) adopt an official seal;
01 (14) adopt bylaws for the regulation of its affairs and the conduct of its 02 business and adopt regulations and policies in connection with the performance of its 03 functions and duties; 04 (15) employ fiscal consultants, engineers, attorneys, appraisers, and 05 other consultants and employees that may, in the judgment of the corporation, be 06 required and fix and pay their compensation from funds available to the corporation; 07 (16) procure insurance against a loss in connection with its operation; 08 (17) borrow money as provided in this chapter to carry out its 09 corporate purposes and issue its obligations as evidence of borrowing; 10 (18) include in a borrowing the amounts necessary to pay financing 11 charges, interest on the obligations for a period not exceeding one year after the date 12 on which the corporation estimates funds will otherwise be available to pay the 13 interest, consultant, advisory, and legal fees, and other expenses that are necessary or 14 incident to the borrowing; 15 (19) receive, administer, and comply with the conditions and 16 requirements of an appropriation, gift, grant, or donation of property or money; 17 (20) do all acts and things necessary, convenient, or desirable to carry 18 out the powers expressly granted or necessarily implied in this chapter; 19 (21) invest or reinvest, subject to its contracts with noteholders and 20 bondholders, money or funds held by the corporation, including funds in the in-state 21 natural gas pipeline fund (AS 31.25.100), in obligations or other securities or 22 investments in which banks or trust companies in the state may legally invest funds 23 held in reserves or sinking funds or funds not required for immediate disbursement, 24 and in certificates of deposit or time deposits secured by obligations of, or guaranteed 25 by, the state or the United States. 26 (b) The corporation may not develop or construct a natural gas pipeline that is 27 a competing natural gas pipeline project for purposes of AS 43.90.440 unless the 28 project for which a license is issued under AS 43.90 has been abandoned or is no 29 longer receiving the inducements in AS 43.90.110(a). 30 (c) The corporation shall establish a schedule of reasonable fees and collect 31 fees, rentals, and other charges for use of the facilities of the corporation.
01 (d) If commitments to acquire firm transportation capacity are received in an 02 open season conducted by the corporation, the corporation shall, within 10 days after 03 accepting and executing the written commitments received during the open season, 04 report the results of the open season to the president of the senate and the speaker of 05 the house of representatives and inform the public of the results of the open season 06 through publication on the Internet website of the corporation and in a press release or 07 other announcement to the media. The results made public must include the name of 08 each prospective shipper, the amount of capacity allocated, and the period of the 09 commitment. 10 Sec. 31.25.090. Confidentiality; interagency cooperation. (a) The 11 corporation may have access to information of departments, agencies, and public 12 corporations of the state that is directly related to the planning, financing, 13 development, acquisition, maintenance, construction, or operation of an in-state 14 natural gas pipeline. The corporation shall avoid duplicating studies, plans, and 15 designs that have already been provided or obtained by other state entities. All 16 departments, agencies, and public corporations of the state shall cooperate with and 17 shall provide information, services, facilities, and loans to the corporation upon its 18 request and, except for requests from the Alaska Gasline Inducement Act coordinator 19 (AS 43.90.250), give priority to requests of the corporation. 20 (b) Upon request by the corporation, a state entity shall provide water, sand 21 and gravel, other nonhydrocarbon natural resources, and a permit or a lease to the 22 corporation at the usual and customary rates, except as provided in (d) of this section. 23 Review of and action on a request shall be conducted and taken as provided in AS 24 38.34.020. In this subsection, "state entity" means a state department, authority, or 25 other administrative unit of the executive branch of state government, a public 26 university, or a public corporation of the state. 27 (c) That part of the cost of providing, under (b) of this section, water, sand and 28 gravel, or other nonhydrocarbon natural resources, or of entering into a lease or 29 issuing a permit, that is borne by the corporation for an in-state natural gas pipeline 30 project that is owned in whole or in part by the corporation may not be included in the 31 rate base in a proceeding under AS 42 or before the Federal Energy Regulatory
01 Commission. 02 (d) Notwithstanding any contrary provision of law, the Department of Natural 03 Resources shall grant the corporation a right-of-way lease under AS 38.35 for the gas 04 pipeline transportation corridor at no appraisal or rental cost if 05 (1) a complete right-of-way lease application under AS 38.35.050 is 06 submitted; 07 (2) the lease application is made the subject of notice and other 08 reasonable and appropriate publication requirements under AS 38.35.070; and 09 (3) the corporation that submits the application for the right-of-way 10 lease agrees to be bound by the right-of-way lease covenants set out in AS 38.35.121. 11 (e) After approval by the commissioner of natural resources, a right-of-way 12 lease received by the corporation under (d) of this section may be transferred to a 13 successor in interest under the same terms and conditions applicable to the right-of- 14 way lease granted to the corporation. 15 (f) The corporation may enter into confidentiality agreements necessary to 16 acquire or provide information to carry out its functions. If a state agency determines 17 that a law or provision of a contract to which the state agency is a party requires the 18 state agency to preserve the confidentiality of the information and that delivering the 19 information to the corporation would violate the confidentiality provision of that law 20 or contract, the state agency shall 21 (1) identify the applicable law or contract provision to the corporation; 22 and 23 (2) obtain the consent of the person who has the right to waive the 24 confidentiality of the information under the applicable law or contract provision before 25 the state agency transfers the information to the corporation. 26 (g) Information acquired or provided by the corporation under a 27 confidentiality agreement is not subject to disclosure under AS 40.25.110. The 28 corporation may enter into confidentiality agreements with a public agency, as defined 29 in AS 40.25.220, to allow release of confidential information. The portions of the 30 records and files of a public agency bound by a confidentiality agreement that reflect, 31 incorporate, or analyze information subject to a confidentiality agreement under this
01 subsection are not public records. Confidentiality agreements entered into under this 02 subsection are valid and binding against all parties in accordance with the terms of the 03 confidentiality agreement. 04 (h) The conduct of and results from field studies and other technical 05 information; trade secrets; and information that discloses the particulars of a business 06 or the affairs of a private enterprise, investor, advisor, consultant, counsel, or manager 07 developed or obtained by the corporation relating to the development, financing, 08 construction, or operation of an in-state natural gas pipeline project by the corporation 09 are confidential and not subject to disclosure under AS 40.25.110. The corporation 10 may waive the confidentiality of the information described in this subsection, except 11 for information acquired from another person that is subject to a confidentiality 12 agreement, if the waiver is consistent with the interests of the state and will facilitate 13 the development, financing, or construction of an in-state natural gas pipeline. 14 Sec. 31.25.100. In-state natural gas pipeline fund. The in-state natural gas 15 pipeline fund is established in the corporation and consists of money appropriated to 16 it. Unless otherwise provided by law, money appropriated to the fund lapses into the 17 general fund on the day this section is repealed. Interest and other income received on 18 money in the fund shall be separately accounted for and may be appropriated to the 19 fund. The corporation may use money appropriated to the fund without further 20 appropriation for the planning, financing, development, acquisition, maintenance, 21 construction, and operation of an in-state natural gas pipeline. 22 Sec. 31.25.110. International borrowing. (a) For the purpose of obtaining 23 access to international capital markets to borrow money, the corporation may 24 (1) invest in corporations established under this section; 25 (2) issue bonds and borrow money for investments in corporations 26 established under this section; 27 (3) borrow from corporations established under this section; 28 (4) guarantee the obligations of corporations established under this 29 section; or 30 (5) enter into agreements with corporations established under this 31 section or with other persons.
01 (b) In exercising a power under this section, the corporation may not subject 02 its assets to risk of loss through foreign currency exchange. 03 (c) A guarantee under this section constitutes a bond of the corporation as 04 defined in AS 31.25.390. 05 Sec. 31.25.120. Creation of subsidiaries; sale of natural gas by a 06 subsidiary. (a) The corporation may create subsidiary corporations for the purpose of 07 developing, constructing, operating, and financing in-state natural gas pipeline 08 projects; for the purpose of aiding in the development, construction, operation, and 09 financing of in-state natural gas pipeline projects; or for the purpose of acquiring the 10 state's royalty share of natural gas, natural gas from the North Slope, and natural gas 11 from other regions of the state, including the state's outer continental shelf, and 12 making that natural gas available to markets in the state or for export. A subsidiary 13 corporation created under this section may be incorporated under AS 10.20.146 - 14 10.20.166. The corporation may transfer assets of the corporation to a subsidiary 15 created under this section. A subsidiary created under this section may borrow money 16 and issue bonds as evidence of that borrowing and has all the powers of the 17 corporation that the corporation grants to it. Unless otherwise provided by the 18 corporation, the debts, liabilities, and obligations of a subsidiary corporation created 19 under this section are not the debts, liabilities, or obligations of the corporation. 20 (b) To honor delivery commitments in a contract entered into by a subsidiary 21 of the corporation, the subsidiary and the commissioner of natural resources may 22 pledge, as necessary, royalty gas owned by the state and not otherwise committed by 23 contract to other purchasers of royalty gas. The commissioner of natural resources 24 shall determine the amount of gas that may be pledged and the price for that gas. A 25 pledge made under this subsection shall be treated as a disposal of gas other than by 26 sale or exchange for purposes of AS 38.05.183. 27 Sec. 31.25.130. Administrative procedure; regulations. (a) Except for AS 28 44.62.310 - 44.62.319 (Open Meetings Act), AS 44.62 (Administrative Procedure Act) 29 does not apply to this chapter. The corporation shall make available to members of the 30 public copies of the regulations adopted under (b) - (e) of this section. Within 45 days 31 after adoption, the chair of the board shall submit a regulation adopted under (b) - (e)
01 of this section to the chair of the Administrative Regulation Review Committee under 02 AS 24.20.400 - 24.20.460. 03 (b) The board may adopt regulations by motion or by resolution or in another 04 manner permitted by its bylaws. 05 (c) The board may adopt regulations to carry out the purposes of this chapter. 06 (d) Except as provided in (e) of this section, at least 15 days before the 07 adoption, amendment, or repeal of a regulation, the board shall give public notice of 08 the proposed action by posting notice on the corporation's Internet website and on the 09 Alaska Online Public Notice System and by mailing a copy of the notice to every 10 person who has filed a request for notice of proposed regulations with the board or the 11 corporation. The public notice must include a statement of the time, place, and nature 12 of the proceedings for the adoption, amendment, or repeal of the regulation and must 13 include an informative summary of the proposed subject of the regulation. On the date 14 and at the time and place designated in the notice, the board shall give each interested 15 person or an authorized representative, or both, the opportunity to present statements, 16 arguments, or contentions in writing and shall give members of the public an 17 opportunity to present oral statements, arguments, or contentions for a total period of 18 at least one hour. The board shall consider all relevant matter presented to it before 19 adopting, amending, or repealing a regulation. At a hearing under this subsection, the 20 board may continue or postpone the hearing to a time and place that it determines. A 21 regulation that is adopted, or its amendment or repeal, may vary in content from the 22 informative summary specified in this subsection if the subject matter of the 23 regulation, or its amendment or repeal, remains the same and the original notice was 24 written to ensure that members of the public are reasonably notified of the proposed 25 subject of the board's action in order for them to determine whether their interests 26 could be affected by the board's action on that subject. 27 (e) A regulation or order of repeal may be adopted as an emergency regulation 28 or order of repeal if the board makes a finding in its order of adoption or repeal, 29 including a statement of the facts that constitute the emergency, that the adoption of 30 the regulation or order of repeal is necessary for the immediate preservation of the 31 orderly operation of the corporation's bonding programs. Upon adoption of an
01 emergency regulation, the board shall, within 10 days after adoption, give notice of the 02 adoption in accordance with (d) of this section. An emergency regulation adopted 03 under this subsection does not remain in effect more than 120 days unless the board 04 complies with (d) of this section during the 120-day period. 05 (f) A regulation adopted under (b) - (e) of this section becomes effective 06 immediately upon its adoption by the board, unless otherwise specifically provided by 07 the order of adoption. 08 Sec. 31.25.140. Exemption from the State Procurement Code and the 09 Executive Budget Act; corporation finances. (a) The corporation and its subsidiaries 10 are exempt from the provisions of AS 36.30 (State Procurement Code) and AS 37.07 11 (Executive Budget Act). 12 (b) To further ensure effective budgetary decision making by the legislature, 13 the board shall 14 (1) annually review the corporation's assets, including the assets of the 15 in-state natural gas pipeline fund under AS 31.25.100, to determine whether assets of 16 the corporation exceed an amount required to fulfill the purposes of the corporation as 17 defined in this chapter; in making its review, the board shall determine whether, and to 18 what extent, assets in excess of the amount required to fulfill the purposes of the 19 corporation during the next fiscal year are available without 20 (A) breaching an agreement entered into by the corporation; 21 (B) materially impairing the operations or financial integrity of 22 the corporation; or 23 (C) materially affecting the ability of the corporation to fulfill 24 the purposes of the corporation as defined in this chapter; 25 (2) specifically identify in the corporation's assets the amounts that the 26 board believes are necessary to meet the requirements of (1)(C) of this subsection; and 27 (3) present to the legislature by January 10 of each year a complete 28 accounting of all assets of the corporation, including assets of the in-state natural gas 29 pipeline fund under AS 31.25.100, and a report of the review and determination made 30 under (1) and (2) of this subsection; the accounting shall be audited by an independent 31 outside auditor.
01 Article 2. Bonds and Notes. 02 Sec. 31.25.150. Federal taxation of interest on bonds and bond anticipation 03 notes. If the interest on bonds or bond anticipation notes of the corporation becomes 04 taxable under the income tax laws of the United States, the legislature may appropriate 05 an amount sufficient to pay the outstanding principal of and interest on the bonds or 06 bond anticipation notes. Nothing in this section creates a debt or liability of the state. 07 Sec. 31.25.160. Bonds and notes. (a) The corporation may, by resolution, 08 issue bonds and bond anticipation notes to provide funds to carry out its purposes. 09 (b) The principal of and interest on the bonds or notes are payable from 10 corporation funds. Bond anticipation notes may be payable from the proceeds of the 11 sale of bonds or from the proceeds of sale of other bond anticipation notes or, in the 12 event bond or bond anticipation note proceeds are not available, from other funds or 13 assets of the corporation. Bonds or notes may be additionally secured by a pledge of a 14 grant or contribution from the federal government, or a corporation, association, 15 institution, or person, or a pledge of money, income, or revenue of the corporation 16 from any source. 17 (c) Bonds or bond anticipation notes may be issued in one or more series and 18 shall be dated, bear interest at the rate or rates a year or within the maximum rate, be 19 in the denomination, be in the form, either coupon or registered, carry the conversion 20 or registration provisions, have the rank or priority, be executed in the manner and 21 form, be payable from the sources in the medium of payment and place or places 22 within or outside the state, be subject to authentication by a trustee or fiscal agent, and 23 be subject to the terms of redemption with or without premium, as the resolution of the 24 corporation may provide. Bond anticipation notes shall mature at the time or times that 25 are determined by the corporation. Bonds shall mature at a time, not exceeding 50 26 years from their date, that is determined by the corporation. Before the preparation of 27 definitive bonds or bond anticipation notes, the corporation may issue interim receipts 28 or temporary bonds or bond anticipation notes, with or without coupons, exchangeable 29 for bonds or bond anticipation notes when the definitive bonds or bond anticipation 30 notes have been executed and are available for delivery. 31 (d) Bonds or bond anticipation notes may be sold in the manner and on the
01 terms the corporation determines. 02 (e) If an officer whose signature or a facsimile of whose signature appears on 03 bonds or notes or coupons attached to them ceases to be an officer before the delivery 04 of the bond, note, or coupon, the signature or facsimile is valid the same as if the 05 officer had remained in office until delivery. 06 (f) In a resolution of the corporation authorizing or relating to the issuance of 07 bonds or bond anticipation notes, the corporation has power by provisions in the 08 resolution that will constitute covenants of the corporation and contracts with the 09 holders of the bonds or bond anticipation notes 10 (1) to pledge to a payment or purpose all or a part of its revenue to 11 which its right then exists or may thereafter come into existence, the money derived 12 from the revenue, and the proceeds of the bonds or notes; 13 (2) to covenant against pledging all or a part of its revenue or against 14 permitting or suffering a lien on the revenue of its property; 15 (3) to covenant as to the use and disposition of payments of principal 16 or interest received by the corporation on investments held by the corporation; 17 (4) to covenant as to establishment of reserves or sinking funds and the 18 making of provision for and the regulation and disposition of the reserves or sinking 19 funds; 20 (5) to covenant with respect to or against limitations on a right to sell 21 or otherwise dispose of property of any kind; 22 (6) to covenant as to bonds and notes to be issued, and their 23 limitations, terms, and condition, and as to the custody, application, and disposition of 24 the proceeds of the bonds and notes; 25 (7) to covenant as to the issuance of additional bonds or notes or as to 26 limitations on the issuance of additional bonds or notes and the incurring of other 27 debts; 28 (8) to covenant as to the payment of the principal of or interest on the 29 bonds or notes, as to the sources and methods of the payment, as to the rank or priority 30 of the bonds or notes with respect to a lien or security, or as to the acceleration of the 31 maturity of the bonds or notes;
01 (9) to provide for the replacement of lost, stolen, destroyed, or 02 mutilated bonds or notes; 03 (10) to covenant against extending the time for the payment of bonds 04 or notes or interest on the bonds or notes; 05 (11) to covenant as to the redemption of bonds or notes and privileges 06 of their exchange for other bonds or notes of the corporation; 07 (12) to covenant to create or authorize the creation of special funds of 08 money to be held in pledge or otherwise for operating expenses, payment or 09 redemption of bonds or notes, reserves, or other purposes, and as to the use and 10 disposition of the money held in the funds; 11 (13) to establish the procedure, if any, by which the terms of a contract 12 or covenant with or for the benefit of the holders of bonds or notes may be amended or 13 abrogated, the amount of bonds or notes the holders of which must consent to 14 amendment or abrogation, and the manner in which the consent may be given; 15 (14) to covenant as to the custody of any of its properties or 16 investments, the safekeeping and insurance of its properties or investments, and the 17 use and disposition of insurance money; 18 (15) to covenant as to the time or manner of enforcement or restraint 19 from enforcement of any rights of the corporation arising by reason of or with respect 20 to nonpayment or violation of the terms of an agreement to which the corporation is a 21 party or with respect to which the corporation has enforcement rights; 22 (16) to provide for the rights, liabilities, powers, and duties arising 23 upon the breach of a covenant, condition, or obligation, and to prescribe the events of 24 default and the terms and conditions on which any or all of the bonds, notes, or other 25 obligations of the corporation become or may be declared due and payable before 26 maturity and the terms and conditions on which a declaration and its consequences 27 may be waived; 28 (17) to vest in a trustee or trustees within or outside the state the 29 property, rights, powers, and duties in trust as the corporation may determine, which 30 may include any or all of the rights, powers, and duties of a trustee appointed by the 31 holders of the bonds or notes, and to limit or abrogate the right of the holders of the
01 bonds or notes of the corporation to appoint a trustee under this chapter or limit the 02 rights, powers, and duties of the trustee; 03 (18) to pay the costs or expenses incident to the enforcement of the 04 bonds or notes or of the provisions of the resolution or of a covenant or agreement of 05 the corporation with the holders of its bonds or notes; 06 (19) to agree with a corporate trustee, which may be a trust company 07 or bank having the powers of a trust company within or outside the state, as to the 08 pledging or assigning of revenue or funds to which or in which the corporation has any 09 rights or interest; the agreement may further provide for other rights and remedies 10 exercisable by the trustee as may be proper for the protection of the holders of the 11 bonds or notes of the corporation and not otherwise in violation of law and may 12 provide for the restriction of the rights of an individual holder of bonds or notes of the 13 corporation; 14 (20) to appoint and provide for the duties and obligations of any 15 paying agent or paying agents, or other fiduciaries as the resolution may provide 16 within or outside the state; 17 (21) to limit the rights of the holders of the bonds or notes to enforce a 18 pledge or covenant securing bonds or notes; 19 (22) to make covenants other than and in addition to the covenants 20 expressly authorized in this section, of like or different character, and to make 21 covenants to do or refrain from doing acts and things as may be necessary, or as may 22 be convenient and desirable, to better secure bonds or notes or that, in the absolute 23 discretion of the corporation, would tend to make bonds or notes more marketable, 24 notwithstanding that the covenants, acts, or things may not be enumerated in this 25 section. 26 Sec. 31.25.170. Independent financial advisor. In negotiating the private sale 27 of bonds or bond anticipation notes to an underwriter, the corporation may retain a 28 financial advisor. A financial advisor retained under this section must be independent 29 from the underwriter. 30 Sec. 31.25.180. Validity of pledge. The pledge of assets or revenue of the 31 corporation to the payment of the principal of or interest on an obligation of the
01 corporation is valid and binding from the time the pledge is made, and the assets or 02 revenue are immediately subject to the lien of the pledge without physical delivery or 03 further act. The lien of the pledge is valid and binding against all parties having claims 04 of any kind in tort, contract, or otherwise against the corporation, regardless of 05 whether those parties have notice of the lien of the pledge. This section does not 06 prohibit the corporation from selling assets subject to a pledge, except that the sale 07 may be restricted by the trust agreement or resolution providing for the issuance of the 08 obligations. 09 Sec. 31.25.190. Capital reserve funds. (a) For the purpose of securing one or 10 more issues of its obligations, the corporation may establish one or more special funds, 11 called "capital reserve funds," and shall pay into those capital reserve funds 12 (1) money appropriated and made available by the state for the purpose 13 of any of those funds; 14 (2) proceeds of the sale of its obligations, to the extent provided in the 15 resolution or resolutions of the corporation authorizing their issuance; and 16 (3) other money that may be made available to the corporation for the 17 purposes of those funds from another source. 18 (b) All money held in a capital reserve fund, except as provided in this section, 19 shall be used as required, solely for the payment of the principal of obligations or of 20 the sinking fund payments with respect to those obligations; the purchase or 21 redemption of obligations; the payment of interest on obligations; or the payment of a 22 redemption premium required to be paid when those obligations are redeemed before 23 maturity. However, money in a fund may not, at any time, be withdrawn from the fund 24 in an amount that would reduce the amount of that fund to less than the capital reserve 25 requirement set out in (c) of this section, except for the purpose of making, with 26 respect to those obligations, payment, when due, of principal, interest, redemption 27 premiums, and the sinking fund payments for the payment of which other money of 28 the corporation is not available. Income or interest earned by, or increment to, a capital 29 reserve fund, because of the investment of the fund or other amounts in it, may be 30 transferred by the corporation to other funds or accounts of the corporation to the 31 extent that the transfer does not reduce the amount of the capital reserve fund below
01 the capital reserve fund requirement. 02 (c) If the corporation decides to issue obligations secured by a capital reserve 03 fund, the obligations may not be issued if the amount in the capital reserve fund is less 04 than a percentage, not exceeding 10 percent of the principal amount of all of those 05 obligations secured by that capital reserve fund then to be issued and then outstanding 06 in accordance with their terms, as may be established by resolution of the corporation 07 (called the "capital reserve fund requirement"), unless the corporation, at the time of 08 issuance of the obligations, deposits in the capital reserve fund from the proceeds of 09 the obligations to be issued or from other sources, an amount that, together with the 10 amount then in the fund, would not be less than the capital reserve fund requirement. 11 (d) In computing the amount of a capital reserve fund for the purpose of this 12 section, securities in which all or a portion of the funds are invested shall be valued at 13 par or, if purchased at less than par, at amortized costs as the term is defined by 14 resolution of the corporation authorizing the issue of the obligations, or by some other 15 reasonable method established by the corporation by resolution. Valuation on a 16 particular date shall include the amount of interest earned or accrued to that date. 17 (e) The chair of the corporation shall annually, not later than January 2, make 18 and deliver to the governor and chairs of the house and senate finance committees a 19 certificate stating the sum, if any, required to restore a capital reserve fund to the 20 capital reserve fund requirement. The legislature may appropriate that sum, and the 21 corporation shall deposit all sums appropriated by the legislature during the then 22 current fiscal year for the restoration in the proper capital reserve fund. Nothing in this 23 section creates a debt or liability of the state. 24 Sec. 31.25.200. Remedies. A holder of obligations or coupons attached to 25 them issued under of this chapter, and a trustee under a trust agreement or resolution 26 authorizing the issuance of the obligations, except as restricted by a trust agreement or 27 resolution, either at law or in equity, 28 (1) may enforce all rights granted under this chapter, under the trust 29 agreement or resolution, or under another contract executed by the corporation under 30 this chapter; and 31 (2) may enforce and compel the performance of all duties required by
01 this chapter or by the trust agreement or resolution to be performed by the corporation 02 or by an officer of the corporation. 03 Sec. 31.25.210. Negotiable instruments. All obligations and interest coupons 04 attached to them are negotiable instruments under the laws of this state, subject only to 05 applicable provisions for registration. 06 Sec. 31.25.220. Obligations eligible for investment. Obligations issued under 07 this chapter are securities in which all public officers and public bodies of the state and 08 its political subdivisions and all insurance companies, trust companies, banking 09 associations, investment companies, executors, administrators, trustees, and other 10 fiduciaries may properly and legally invest funds, including capital in their control or 11 belonging to them. Those obligations may be deposited with a state or municipal 12 officer of an agency or political subdivision of the state for any purpose for which the 13 deposit of bonds, notes, or obligations of the state is authorized by law. 14 Sec. 31.25.230. Refunding obligations. (a) The corporation may provide for 15 the issuance of refunding obligations for the purpose of refunding obligations then 16 outstanding that have been issued under this chapter, including the payment of the 17 redemption premium on them and interest accrued or to accrue to the date of 18 redemption of the obligations. The issuance of the obligations, the maturities and other 19 details of them, the rights of the holders of them, and the rights, duties, and obligations 20 of the corporation with respect to them are governed by the provisions of this chapter 21 that relate to the issuance of obligations, insofar as those provisions may be 22 appropriate. 23 (b) Refunding obligations may be sold or exchanged for outstanding 24 obligations issued under this chapter and, if sold, the proceeds may be applied, in 25 addition to other authorized purposes, to the purchase, redemption, or payment of the 26 outstanding obligations. Pending the application of the proceeds of refunding 27 obligations, with other available funds, to the payment of the principal of, accrued 28 interest on, and any redemption premium on the obligations being refunded and, if so 29 provided or permitted in the resolution authorizing the issuance of the refunding 30 obligations or in the trust agreement securing them, to the payment of any interest on 31 the refunding obligations and any expenses in connection with the refunding, the
01 proceeds may be invested in direct obligations of, or obligations the principal of and 02 the interest on which are unconditionally guaranteed by, the United States that mature 03 or that will be subject to redemption, at the option of the holders of them, not later 04 than the respective dates when the proceeds, together with the interest accruing on 05 them, will be required for the purposes intended. 06 Sec. 31.25.240. Credit of state not pledged. (a) Obligations issued under this 07 chapter do not constitute a debt, liability, or obligation of the state or of a political 08 subdivision of the state or a pledge of the faith and credit of the state or of a political 09 subdivision of the state but are payable solely from the revenue or assets of the 10 corporation. Each obligation issued under this chapter shall contain on its face a 11 statement that the corporation is not obligated to pay the obligation or the interest on 12 the obligation except from the revenue or assets of the corporation and that neither the 13 faith and credit nor the taxing power of the state or of any political subdivision of the 14 state is pledged to the payment of the principal of or the interest on the obligation. 15 This subsection applies to all debt, obligations, and liabilities of the corporation 16 regardless of how the debt, obligations, or liabilities are created, including by contract, 17 tort, or bond or note issuance. Except as provided in this subsection, a person may not 18 bring suit against the state or a political subdivision of the state other than the 19 corporation in the courts of the state to enforce or seek a remedy with respect to a 20 debt, obligation, or liability of the corporation. 21 (b) Expenses incurred by the corporation in carrying out the provisions of this 22 chapter are payable from funds provided under this chapter and liability may not be 23 incurred by the corporation in excess of those funds. 24 Article 3. General Provisions. 25 Sec. 31.25.250. Limitation on personal liability. A member of the board or 26 other officer of the corporation or a subsidiary of the corporation is not subject to 27 personal liability or accountability because the member or officer executed or issued 28 an obligation. 29 Sec. 31.25.260. Tax exemption. (a) The exercise of the powers granted by this 30 chapter is, in all respects, for the benefit of the people of the state, for their well-being 31 and prosperity, and for the improvement of their social and economic conditions, and
01 the corporation is not required to pay a tax or assessment on any property owned by 02 the corporation under the provisions of this chapter or on the income from it, including 03 state taxes levied or authorized under AS 43.56.010(a) and local taxes under AS 04 43.56.010(b) as provided in AS 43.56.020. 05 (b) All obligations issued under this chapter are declared to be issued by a 06 body corporate and public of the state and for an essential public and governmental 07 purpose, and the obligations, and the interest and income on and from the obligations, 08 and all fees, charges, funds, revenue, income, and other money pledged or available to 09 pay or secure the payment of the obligations, or interest on the obligations, are exempt 10 from taxation except for transfer, inheritance, and estate taxes. 11 Sec. 31.25.270. Annual report. (a) The corporation shall prepare and transmit 12 annually a report to the governor accounting for the efficient discharge of all 13 responsibility assigned by law or by directive to the corporation. The corporation shall 14 notify the legislature that the report is available. 15 (b) By January 10 of each year, the board shall prepare a report of the 16 corporation. The board shall notify the governor and the legislature that the report is 17 available, and publish notice to the public on the Alaska Online Public Notice System 18 under AS 44.62.175 that the report is available on the corporation's Internet website. 19 The report shall be written in easily understandable language. The report must include 20 a financial statement audited by an independent outside auditor, a comparison of the 21 corporation's performance with the goals of the corporation, and any other information 22 the board believes would be of interest to the governor, the legislature, and the public. 23 The annual income statement and balance sheet of the corporation shall be published 24 on the Internet. The board may also publish electronically or in print, at the 25 corporation's discretion, other reports it considers desirable to carry out its purpose. 26 Sec. 31.25.390. Definitions for AS 31.25.010 - 31.25.390. In AS 31.25.010 - 27 31.25.390, unless the context clearly indicates a different meaning, 28 (1) "board" means the board of directors of the corporation; 29 (2) "bond" or "obligation" means a bond, bond anticipation note, or 30 other note of the corporation authorized to be issued by the corporation under this 31 chapter;
01 (3) "corporation" means the Alaska Gasline Development Corporation; 02 (4) "governmental agency" means a department, division, public 03 agency, political subdivision, or other public instrumentality of the state or the federal 04 government; 05 (5) "in-state natural gas pipeline" means a natural gas pipeline for 06 transporting natural gas in the state; 07 (6) "natural gas pipeline" means a total system of pipe and connected 08 facilities for the transportation, treatment or conditioning, delivery, storage, or further 09 transportation of natural gas, including all pipe, compressor stations, station 10 equipment, and all other facilities used or necessary for an integral line of pipe to carry 11 out the transportation of the natural gas. 12 * Sec. 4. AS 36.30.850(b) is amended by adding new paragraphs to read: 13 (46) contracts by the Alaska Natural Gas Development Authority 14 under AS 41.41.070(d); 15 (47) the Alaska Gasline Development Corporation (AS 31.25) and 16 subsidiaries of the Alaska Gasline Development Corporation. 17 * Sec. 5. AS 37.05.146(c)(22) is amended to read: 18 (22) Regulatory Commission of Alaska under AS 42.05, [AND] AS 19 42.06, and AS 42.08; 20 * Sec. 6. AS 38.05.180(bb)(1) is amended to read: 21 (1) "gas or electric utility" includes an electric cooperative organized 22 under AS 10.25, a municipal utility, and a gas or electric utility regulated under AS 23 42.05; [PROVIDED THAT,] if the contract gas is transmitted to consumers through a 24 pipeline and the gas utility either owns the pipeline or is related in ownership to the 25 owner of the pipeline, then the gas utility qualifies as a "gas or electric utility" within 26 the meaning of this paragraph only if it is bound or agrees to be bound by the 27 covenants set out in AS 38.35.120 or 38.35.121, as applicable; 28 * Sec. 7. AS 38.34.099 is repealed and reenacted to read: 29 Sec. 38.34.099. Definitions. In this chapter, 30 (1) "Alaska Gasline Development Corporation" means the corporation 31 created under AS 31.25.010;
01 (2) "in-state natural gas pipeline" and "natural gas pipeline" have the 02 meanings given in AS 31.25.390. 03 * Sec. 8. AS 38.35.100(d) is amended to read: 04 (d) The commissioner shall include in a conditional lease each requirement 05 and condition of the covenants established under AS 38.35.120 or 38.35.121, as 06 applicable. The commissioner may also require that the lessee agree to additional 07 conditions that the commissioner finds to be in the public interest. In place of the 08 covenant established under AS 38.35.120(a)(9), the commissioner shall require the 09 lessee to agree that it will not transfer, assign, pledge, or dispose of in any manner, 10 directly or indirectly, its interest in a conditional right-of-way lease or a pipeline 11 subject to the conditional lease, unless the commissioner, after considering the public 12 interest and issuing written findings to substantiate a decision to allow the transfer, 13 authorizes the transfer. The commissioner shall also require the lessee to agree not to 14 allow the transfer of control of the lessee without the approval of the commissioner; as 15 used in this subsection, "transfer of control of the lessee" means the transfer of 30 16 percent or more, in the aggregate, of ownership interest in the lessee in one or more 17 transactions to one or more persons by one or more persons. 18 * Sec. 9. AS 38.35.120(a) is amended to read: 19 (a) Except as provided for a natural gas pipeline subject to AS 38.35.121, 20 a [A] noncompetitive lease of state land for a right-of-way for an oil or natural gas 21 pipeline valued at $1,000,000 or more may be granted only upon the condition that the 22 lessee expressly covenants in the lease, in consideration of the rights acquired by it 23 under the lease, that 24 (1) it assumes the status of and will perform all of its functions 25 undertaken under the lease as a common carrier and will accept, convey, and transport 26 without discrimination crude oil or natural gas, depending on the kind of pipeline 27 involved, delivered to it for transportation from fields in the vicinity of the pipeline 28 subject to the lease throughout its route both on state land obtained under the lease and 29 on the other land; it will accept, convey, and transport crude oil or natural gas without 30 unjust or unreasonable discrimination in favor of one producer or person, including 31 itself, as against another but will take the crude oil or natural gas, depending on the
01 kind of pipeline involved, delivered or offered, without unreasonable discrimination, 02 that the Regulatory Commission of Alaska shall, after a full hearing with due notice to 03 the interested parties and a proper finding of facts, determine to be reasonable in the 04 performance of its duties as a common carrier; however, a lessee that owns or operates 05 a natural gas pipeline 06 (A) subject to regulation either under 15 U.S.C. 717 et seq. 07 (Natural Gas Act) [THE NATURAL GAS ACT (15 U.S.C. 717 ET SEQ.) OF 08 THE UNITED STATES] or by the state or a political subdivision 09 [SUBDIVISIONS] with respect to rates and charges for the sale of natural gas, 10 is, to the extent of that regulation, exempt from the common carrier 11 requirement in this paragraph; 12 (B) that is a North Slope natural gas pipeline (i) is required to 13 operate as a common carrier only with respect to the intrastate transportation of 14 North Slope natural gas, as that term is defined in AS 42.06.630, and (ii) is not 15 required to operate as a common carrier as to a liquefied natural gas facility or 16 a marine terminal facility associated with the pipeline, and is not otherwise 17 required to perform its functions under the lease as a common carrier; for 18 purposes of this subparagraph, "North Slope natural gas pipeline" means all the 19 facilities of a total system of pipe, whether owned or operated under a contract, 20 agreement, or lease, used by a carrier for transportation of North Slope natural 21 gas, as defined by AS 42.06.630, for delivery, for storage, or for further 22 transportation, and including all pipe, [PUMP, OR] compressor stations, 23 station equipment, tanks, valves, access roads, bridges, airfields, terminals and 24 terminal facilities, including docks and tanker loading facilities, operations 25 control centers for both the upstream part of the pipeline and the terminal, 26 tanker ballast treatment facilities, fire protection system, communication 27 system, and all other facilities used or necessary for an integral line of pipe, 28 taken as a whole, to carry out transportation, including an extension or 29 enlargement of the line; 30 (2) it will interchange crude oil or natural gas, depending on the kind 31 of pipeline involved, with each like common carrier and provide connections and
01 facilities for the interchange of crude oil or natural gas at every locality reached by 02 both pipelines when the necessity exists, subject to rates and regulations made by the 03 appropriate state or federal regulatory agency; 04 (3) it will maintain and preserve books, accounts, and records and will 05 make those reports that the state may prescribe by regulation or law as necessary and 06 appropriate for purposes of administration of this chapter; 07 (4) it will accord at all reasonable times to the state and its authorized 08 agents and auditors the right of access to its property and records, of inspection of its 09 property, and of examination and copying of records; 10 (5) it will provide connections, as determined by the Regulatory 11 Commission of Alaska under AS 42.06.340, to facilities on the pipeline subject to the 12 lease, both on state land and other land in the state, for the purpose of delivering crude 13 oil or natural gas, depending on the kind of pipeline involved, to persons (including 14 the state and its political subdivisions) contracting for the purchase at wholesale of 15 crude oil or natural gas transported by the pipeline when required by the public 16 interest; 17 (6) it shall, notwithstanding any other provision, provide connections 18 and interchange facilities at state expense at [SUCH] places the state considers 19 necessary if the state determines to take a portion of its royalty or taxes in oil or 20 natural gas; 21 (7) it will construct and operate the pipeline in accordance with 22 applicable state laws and lawful regulations and orders of the Regulatory Commission 23 of Alaska; 24 (8) it will, at its own expense, during the term of the lease, 25 (A) maintain the leasehold and pipeline in good repair; 26 (B) promptly repair or remedy [ANY] damage to the leasehold; 27 (C) promptly compensate for [ANY] damage to or destruction 28 of property for which the lessee is liable resulting from damage to or 29 destruction of the leasehold or pipeline; 30 (9) it will not transfer, assign, or dispose of, in any manner, directly or 31 indirectly, or by transfer of control of the carrier corporation, its interest in a right-of-
01 way lease, or [ANY] rights under the lease or a [ANY] pipeline subject to the lease to 02 a [ANY] person other than another owner of the pipeline (including subsidiaries, 03 parents, and affiliates of the owners), except to the extent that the commissioner, after 04 consideration of the protection of the public interest (including whether the proposed 05 transferee is fit, willing, and able to perform the transportation or other acts proposed 06 in a manner that will reasonably protect the lives, property, and general welfare of the 07 people of Alaska), authorizes; the commissioner shall not unreasonably withhold 08 consent to the transfer, assignment, or disposal; 09 (10) it will file with the commissioner a written appointment of a 10 named permanent resident of the state to be its registered agent in the state and to 11 receive service of notices, regulations, decisions, and orders of the commissioner; if it 12 fails to appoint an agent for service, service may be made by posting a copy in the 13 office of the commissioner, filing a copy in the office of the lieutenant governor, and 14 mailing a copy to the lessee's last known address; 15 (11) the applicable law of this state will be used in resolving questions 16 of interpretation of the lease; 17 (12) the granting of the right-of-way lease is subject to the express 18 condition that the exercise of the rights and privileges granted under the lease will not 19 unduly interfere with the management, administration, or disposal by the state of the 20 land affected by the lease, and that the lessee agrees and consents to the occupancy 21 and use by the state, its grantees, permittees, or other lessees of any part of the right- 22 of-way not actually occupied or required by the pipeline for the full and safe 23 utilization of the pipeline, for necessary operations incident to land management, 24 administration, or disposal; 25 (13) it will be liable to the state for damages or injury incurred by the 26 state caused by the construction, operation, or maintenance of the pipeline and it will 27 indemnify the state for the liabilities or damages; 28 (14) it will procure and furnish liability and property damage insurance 29 from a company licensed to do business in the state or furnish other security or 30 undertaking upon the terms and conditions the commissioner considers necessary if 31 the commissioner finds that the net assets of the lessee are insufficient to protect the
01 public from damage for which the lessee may be liable arising out of the construction 02 or operation of the pipeline. 03 * Sec. 10. AS 38.35.120(b) is amended to read: 04 (b) Except as provided for a natural gas pipeline subject to AS 38.35.121, 05 for [FOR] a right-of-way lease granted under this chapter for an oil or natural gas 06 pipeline valued at $1,000,000 or more to be valid and of legal effect, it must contain 07 the terms required to be inserted under the provisions of AS 38.35.110 - 38.35.140. An 08 oil or natural gas pipeline right-of-way lease granted under this chapter and subject to 09 this section that does not contain the required terms is null and void and without legal 10 effect and does not vest any interest in state land or any authority in the carrier granted 11 the lease. 12 * Sec. 11. AS 38.35 is amended by adding a new section to read: 13 Sec. 38.35.121. Covenants required to be in a lease to a natural gas 14 pipeline that is a contract carrier. (a) For a lease of state land for a right-of-way for 15 which an applicant has applied as a contract carrier under AS 42.08, a noncompetitive 16 lease of state land for a right-of-way for a natural gas pipeline valued at $1,000,000 or 17 more may be granted only on the condition that the lessee expressly covenant in the 18 lease, in consideration of the rights acquired by it under the lease, that 19 (1) except for the covenants in AS 38.35.120(a)(1), (2), and (5), it will 20 meet the requirements of AS 38.35.120; 21 (2) it will interchange natural gas and provide connections with each 22 public utility pipeline, common carrier pipeline, or contract carrier pipeline, and 23 facilities for the interchange of natural gas at every locality reached by both pipelines 24 when the necessity exists, as provided in contracts on file with the Regulatory 25 Commission of Alaska; 26 (3) it assumes the status of and will perform all of its functions 27 undertaken under the lease as a contract carrier and, subject to contracts with shippers, 28 will accept, convey, and transport, without discrimination, natural gas delivered to it 29 for transportation from fields in the vicinity of the pipeline subject to the right-of-way 30 lease throughout the pipeline route, both on state land obtained under the lease and on 31 other land, and that, subject to contracts with shippers, it will accept, convey, and
01 transport natural gas without unjust or unreasonable discrimination in favor of itself or 02 one producer or person against another, but will take the natural gas delivered or 03 offered without unreasonable discrimination; 04 (4) it will expand the natural gas pipeline on commercially reasonable 05 terms that, when possible, encourage exploration and development of gas resources in 06 this state without increasing transportation costs for a shipper except as provided for in 07 the contract with the shipper; in this paragraph, "commercially reasonable terms" 08 means terms that produce sufficient revenue from transportation contracts to cover the 09 cost of the expansion, including increased fuel costs and a reasonable return on capital, 10 without impairing the ability of the pipeline to recover the costs of existing facilities; 11 (5) it will not require a shipper to pay a rate in excess of the rates 12 provided for in the contract with that shipper. 13 (b) A contract carrier may offer to a shipper firm transportation service, 14 interruptible transportation service, or both. In this subsection, "firm transportation 15 service" has the meaning given in AS 42.08.900. 16 (c) The lessee may not construct or expand or allow the construction or 17 expansion of a natural gas pipeline under (a) of this section to be a competing natural 18 gas pipeline project unless the project for which a license is issued under AS 43.90 has 19 been abandoned or is no longer receiving the inducements under AS 43.90.110(a). In 20 this subsection, 21 (1) "competing natural gas pipeline project" has the meaning given in 22 AS 43.90.440; 23 (2) "license" has the meaning given in AS 43.90.900. 24 * Sec. 12. AS 38.35.140 is amended by adding a new subsection to read: 25 (c) Notwithstanding (a) of this section, a right-of-way lease shall be granted 26 without appraisal or rental costs to the Alaska Gasline Development Corporation 27 created under AS 31.25.010. 28 * Sec. 13. AS 38.35.200 is amended by adding new subsections to read: 29 (c) Except as provided for an applicant in (a) of this section and 30 notwithstanding any contrary provision of law, an action or decision of the 31 commissioner or other state officer or agency concerning the issuance or approval of a
01 necessary right-of-way, permit, lease, certificate, license, or other authorization for the 02 planning, financing, acquisition, maintenance, development, construction, or initial 03 operation of a natural gas pipeline by the Alaska Gasline Development Corporation 04 under AS 31.25 that uses a right-of-way subject to this chapter may not be subject to 05 judicial review, except that a claim alleging the invalidity of this subsection must be 06 brought within 60 days after the effective date of this Act, and a claim alleging that an 07 action will deny rights under the Constitution of the State of Alaska must be brought 08 within 60 days following the date of that action. A claim that is not filed within the 09 limitations established in this subsection is barred. A complaint under this subsection 10 must be filed in superior court, and the superior court has exclusive jurisdiction. 11 Notwithstanding AS 22.10.020(c), except in conjunction with a final judgment on a 12 claim filed under this subsection, the superior court may not grant injunctive relief, 13 including a temporary restraining order, preliminary injunction, permanent injunction, 14 or stay, against the issuance of a necessary right-of-way, permit, lease, certificate, 15 license, or other authorization for the planning, financing, acquisition, maintenance, 16 development, construction, or initial operation of a natural gas pipeline by the Alaska 17 Gasline Development Corporation. In this subsection, "natural gas pipeline" has the 18 meaning given in AS 38.34.099. 19 (d) An appeal of a permitting decision or authorization by the Department of 20 Environmental Conservation under AS 46.03 or AS 46.14 that is made under a 21 program approved or delegated by the United States Environmental Protection Agency 22 is not 23 (1) subject to the limitation in (a) of this section; 24 (2) included in the actions or decisions described in (c) of this section. 25 * Sec. 14. AS 39.25.110(11) is amended by adding a new subparagraph to read: 26 (H) Alaska Gasline Development Corporation and subsidiaries 27 of the Alaska Gasline Development Corporation; 28 * Sec. 15. AS 39.50.200(b) is amended by adding a new paragraph to read: 29 (64) the board of directors of the Alaska Gasline Development 30 Corporation or the board of directors of a subsidiary of the Alaska Gasline 31 Development Corporation.
01 * Sec. 16. AS 40.25.120(a) is amended to read: 02 (a) Every person has a right to inspect a public record in the state, including 03 public records in recorders' offices, except 04 (1) records of vital statistics and adoption proceedings, which shall be 05 treated in the manner required by AS 18.50; 06 (2) records pertaining to juveniles unless disclosure is authorized by 07 law; 08 (3) medical and related public health records; 09 (4) records required to be kept confidential by a federal law or 10 regulation or by state law; 11 (5) to the extent the records are required to be kept confidential under 12 20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure 13 or retain federal assistance; 14 (6) records or information compiled for law enforcement purposes, but 15 only to the extent that the production of the law enforcement records or information 16 (A) could reasonably be expected to interfere with enforcement 17 proceedings; 18 (B) would deprive a person of a right to a fair trial or an 19 impartial adjudication; 20 (C) could reasonably be expected to constitute an unwarranted 21 invasion of the personal privacy of a suspect, defendant, victim, or witness; 22 (D) could reasonably be expected to disclose the identity of a 23 confidential source; 24 (E) would disclose confidential techniques and procedures for 25 law enforcement investigations or prosecutions; 26 (F) would disclose guidelines for law enforcement 27 investigations or prosecutions if the disclosure could reasonably be expected to 28 risk circumvention of the law; or 29 (G) could reasonably be expected to endanger the life or 30 physical safety of an individual; 31 (7) names, addresses, and other information identifying a person as a
01 participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the 02 advance college tuition savings program under AS 14.40.803 - 14.40.817; 03 (8) public records containing information that would disclose or might 04 lead to the disclosure of a component in the process used to execute or adopt an 05 electronic signature if the disclosure would or might cause the electronic signature to 06 cease being under the sole control of the person using it; 07 (9) reports submitted under AS 05.25.030 concerning certain 08 collisions, accidents, or other casualties involving boats; 09 (10) records or information pertaining to a plan, program, or 10 procedures for establishing, maintaining, or restoring security in the state, or to a 11 detailed description or evaluation of systems, facilities, or infrastructure in the state, 12 but only to the extent that the production of the records or information 13 (A) could reasonably be expected to interfere with the 14 implementation or enforcement of the security plan, program, or procedures; 15 (B) would disclose confidential guidelines for investigations or 16 enforcement and the disclosure could reasonably be expected to risk 17 circumvention of the law; or 18 (C) could reasonably be expected to endanger the life or 19 physical safety of an individual or to present a real and substantial risk to the 20 public health and welfare; 21 (11) the written notification regarding a proposed regulation provided 22 under AS 24.20.105 to the Department of Law and the affected state agency and 23 communications between the Legislative Affairs Agency, the Department of Law, and 24 the affected state agency under AS 24.20.105; 25 (12) records that are 26 (A) proprietary, privileged, or a trade secret in accordance with 27 AS 43.90.150 or 43.90.220(e); 28 (B) applications that are received under AS 43.90 until notice is 29 published under AS 43.90.160; 30 (13) information of the Alaska Gasline Development Corporation 31 created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development
01 Corporation that is confidential by law or under a valid confidentiality 02 agreement. 03 * Sec. 17. AS 41.41.010(a) is amended to read: 04 (a) There is established the Alaska Natural Gas Development Authority, the 05 purpose of which is to provide one or more of the following services and functions in 06 order to acquire [BRING] natural gas produced in [FROM THE NORTH SLOPE 07 OR OTHER REGIONS OF] the state for delivery to market, including 08 [(1)] the acquisition [AND CONDITIONING] of natural gas [; 09 (2) THE DESIGN AND CONSTRUCTION OF THE PIPELINE 10 SYSTEM; 11 (3) THE OPERATION AND MAINTENANCE OF THE PIPELINE 12 SYSTEM; 13 (4) THE DESIGN, CONSTRUCTION, AND OPERATION OF 14 OTHER FACILITIES NECESSARY FOR DELIVERING THE GAS TO MARKET, 15 INCLUDING MARKETS IN THE STATE;] and 16 [(5)] the acquisition of natural gas market share sufficient to ensure the 17 long-term feasibility of pipeline system projects. 18 * Sec. 18. AS 41.41.010(b) is amended to read: 19 (b) The authority is a subsidiary of the Alaska Gasline Development 20 Corporation created under AS 31.25.120 [PUBLIC CORPORATION AND AN 21 INSTRUMENTALITY OF THE STATE WITHIN THE DEPARTMENT OF 22 REVENUE]. 23 * Sec. 19. AS 41.41.010(d) is amended to read: 24 (d) Acquiring [THE ACQUISITION OF] natural gas from the North Slope 25 and other regions of the state, including the Alaska outer continental shelf, and 26 providing that natural gas to [ITS DELIVERY TO MARKETS IN THE STATE 27 FOR USE BY] markets in the state or for export from the state [TO TIDEWATER 28 FOR SHIPMENT TO MARKET BY THE AUTHORITY] are essential government 29 functions of the state. 30 * Sec. 20. AS 41.41.020 is repealed and reenacted to read: 31 Sec. 41.41.020. Authority governing body. The authority shall be governed
01 by the board of directors of the Alaska Gasline Development Corporation. 02 * Sec. 21. AS 41.41.060 is amended to read: 03 Sec. 41.41.060. Compensation of board members; reimbursement of [PER 04 DIEM AND TRAVEL] expenses. Members of the board described in AS 05 31.25.020(a) are entitled to compensation and reimbursement as provided in AS 06 31.25.020(d) when on official business of the authority [PER DIEM AND 07 TRAVEL EXPENSES AUTHORIZED FOR BOARDS AND COMMISSIONS 08 UNDER AS 39.20.180]. 09 * Sec. 22. AS 41.41.070(d) is amended to read: 10 (d) In addition to its employees, the authority may contract for and engage the 11 services of [BOND COUNSEL,] consultants, experts, [AND] financial advisors, and 12 legal counsel, including bond counsel, the authority considers necessary for the 13 purpose of developing information, furnishing advice, or conducting studies, 14 investigations, hearings, or other proceedings. The procurement of services under 15 this subsection is exempt from AS 36.30, including AS 36.30.015(d) and (f). 16 * Sec. 23. AS 41.41.090(b) is amended to read: 17 (b) If a member of the board or an employee of the authority acquires, owns, 18 or controls an interest, direct or indirect, in an entity [OR PROJECT] in which assets 19 of the authority are invested, the member shall immediately disclose the interest to the 20 board. The disclosure is a matter of public record and shall be included in the minutes 21 of the first board meeting following the disclosure. 22 * Sec. 24. AS 41.41.150(a) is amended to read: 23 (a) Information in the possession of the authority is a public record, except 24 that information that is contained in or subject to a confidentiality agreement 25 between the authority and the Alaska Gasline Development Corporation or that 26 discloses the particulars of the business or affairs of a private enterprise or investor is 27 confidential and is not a public record for purposes of AS 40.25.110 - 40.25.140. 28 Confidential information may be disclosed only for the purposes of an official law 29 enforcement investigation or when its production is required in a court proceeding. 30 * Sec. 25. AS 41.41.200 is amended to read: 31 Sec. 41.41.200. Powers of the authority. In furtherance of its corporate
01 purposes, in addition to its other powers, the authority may 02 (1) sue and be sued; 03 (2) adopt a seal; 04 (3) adopt, amend, and repeal bylaws and regulations; 05 (4) make and execute contracts and other instruments; 06 (5) in its own name acquire property, lease, rent, convey, or acquire 07 real and personal property [; A PROJECT SITE OR PART OF A PROJECT SITE 08 MAY BE ACQUIRED BY EMINENT DOMAIN]; 09 (6) acquire natural gas supplies; 10 (7) issue bonds and otherwise incur indebtedness in accordance with 11 AS 41.41.300 - 41.41.410 [IN ORDER TO PAY THE COST OF A PROJECT]; 12 (8) accept gifts, grants, or loans from and enter into contracts or other 13 transactions regarding gifts, grants, or loans with a federal agency or an agency or 14 instrumentality of the state, a municipality, private organization, or other source; 15 (9) enter into contracts or agreements with a federal agency, agency or 16 instrumentality of the state, municipality, or public or private individual or entity, with 17 respect to the exercise of its powers; 18 (10) charge fees or other forms of remuneration for the use of authority 19 properties and facilities; 20 (11) defend and indemnify a current or former member of the board or 21 an employee or agent of the authority against the costs, expenses, judgments, and 22 liabilities as a result of actions taken in good faith on behalf of the authority; and 23 (12) purchase insurance to protect its assets, services, and employees 24 against liabilities that may arise from authority operations and activities. 25 * Sec. 26. AS 41.41.450 is amended to read: 26 Sec. 41.41.450. Property of the authority. The authority may acquire, by 27 purchase, lease, or gift, upon terms that it considers proper, land, structures, real or 28 personal property rights, rights-of-way, franchises, easements, and other interests in 29 land it considers necessary or convenient for the purposes of the corporation [THE 30 FINANCING OF THE PROJECT OR A PART OF THE PROJECT]. 31 * Sec. 27. AS 41.41.500(a) is amended to read:
01 (a) The authority shall enter into one or more prehire project term agreements 02 with labor organizations that 03 (1) contain no-strike clauses; and 04 (2) secure timely completion of a [THE] project of the corporation 05 and maximum employment opportunities for state residents. 06 * Sec. 28. AS 41.41.990(2) is amended to read: 07 (2) "board" means the board of directors of the Alaska Gasline 08 Development Corporation acting as the board of the Alaska Natural Gas 09 Development Authority; 10 * Sec. 29. AS 42.04.080(a) is amended to read: 11 (a) Except as provided in AS 42.05.171 or AS 42.06.140, when a matter 12 comes for decision before the commission under AS 42.05, [OR] AS 42.06, or AS 13 42.08, the chair shall appoint a hearing panel composed of three or more members to 14 hear, or if a hearing is not required, to otherwise consider, and decide the case. The 15 panel shall exercise the powers of the commission with respect to the matter. 16 * Sec. 30. AS 42.05 is amended by adding a new section to read: 17 Sec. 42.05.433. Review of certain contracts by the commission. (a) A 18 precedent agreement or contract entered into by a public utility with the Alaska 19 Gasline Development Corporation or its successors or assigns may contain a covenant 20 for the public utility to establish, charge, and collect rates sufficient to meet its 21 obligations under the contract. If the precedent agreement associated with the contract 22 is approved by the commission under AS 42.08, the rate covenant in the associated 23 contract is valid and enforceable. 24 (b) A public utility negotiating to purchase natural gas to be shipped through 25 an in-state natural gas pipeline regulated under AS 42.08 shall submit the contract to 26 the commission before the contract takes effect. 27 (c) A public utility negotiating to contract for the storage of natural gas 28 shipped in an in-state natural gas pipeline regulated under AS 42.08 shall submit the 29 contract to the commission before the contract takes effect. 30 (d) The commission shall review and may conduct an investigation and 31 hearing to determine whether a contract submitted under (b) or (c) of this section is
01 just and reasonable. The review and determination shall be conducted as provided in 02 AS 42.08.320(b) - (d). The commission shall either approve the contract as presented 03 or, if the commission finds that a contract is not just and reasonable, disapprove the 04 contract. Notwithstanding AS 42.05.175, if the commission has not acted within 180 05 days after the contract is submitted, the contract shall be considered approved and 06 shall take effect immediately. The commission may, by order, extend the 180-day 07 review period by the duration of a delay caused by a failure of the public utility to 08 submit supplemental information that is available to the public utility. A contract that 09 is approved or considered approved under this section is not subject to further review 10 by the commission. 11 * Sec. 31. AS 42.05.711 is amended by adding a new subsection to read: 12 (t) An in-state natural gas pipeline subject to AS 42.08 and an in-state natural 13 gas pipeline carrier subject to AS 42.08 are exempt from this chapter. 14 * Sec. 32. AS 42.06 is amended by adding a new section to article 7 to read: 15 Sec. 42.06.601. Exemption. An in-state natural gas pipeline subject to AS 16 42.08 and an in-state natural gas pipeline carrier subject to AS 42.08 are exempt from 17 this chapter. 18 * Sec. 33. AS 42 is amended by adding a new chapter to read: 19 Chapter 08. In-State Pipeline Contract Carrier. 20 Article 1. Application of Chapter; Purpose. 21 Sec. 42.08.010. Application of chapter; exemption. (a) This chapter applies 22 to the regulation of in-state natural gas pipelines that provide transportation by 23 contract carriage. 24 (b) An in-state natural gas pipeline subject exclusively to federal jurisdiction 25 is exempt from this chapter. 26 Sec. 42.08.020. Qualification of the Alaska Gasline Development 27 Corporation; findings. (a) The Alaska Gasline Development Corporation is 28 financially fit, willing, and able to take the actions, perform the service, and conform 29 to the requirements of this chapter. 30 (b) The board of directors and the officers of the Alaska Gasline Development 31 Corporation are managerially fit, willing, and able to manage the Alaska Gasline
01 Development Corporation and to take the actions, perform the service, and conform to 02 the requirements of this chapter. 03 (c) The proposed service, construction, and operation of an in-state natural gas 04 pipeline for which the Alaska Gasline Development Corporation applies for a 05 certificate under this chapter is required by present and future public convenience and 06 necessity. 07 (d) The findings that the Alaska Gasline Development Corporation is 08 financially fit in (a) of this section and managerially fit in (b) of this section and that 09 an in-state natural gas pipeline is required by present or future public convenience and 10 necessity in (c) of this section are conclusive and binding on the commission. 11 (e) The commission shall determine whether a person making application 12 under this chapter is technically fit, willing, and able to take the actions, perform the 13 service, and conform to the requirements in this chapter. 14 Article 2. Powers and Duties of Regulatory Commission of Alaska. 15 Sec. 42.08.220. General powers and duties. (a) The commission shall 16 (1) regulate, under the provisions of this chapter, an in-state natural gas 17 pipeline that provides transportation by way of contract carriage; 18 (2) require permits for the construction, enlargement in size or 19 operating capacity, extension, connection and interconnection, operation, or 20 abandonment of an in-state natural gas pipeline facility under the provisions of this 21 chapter and subject to the same standards as certification in AS 42.08.330; 22 (3) provide all reasonable assistance to the Department of Law in 23 intervening in, offering evidence in, and participating in proceedings before an officer, 24 department, board, commission, or court of another state or the United States 25 involving an in-state natural gas pipeline carrier or an affiliated interest and affecting 26 the interests of the state. 27 (b) The commission may 28 (1) approve contracts as otherwise provided in this chapter; 29 (2) investigate, on complaint or its own motion, disputes related to 30 rules, regulations, services, practices, and facilities that are not subject to the dispute 31 resolution provisions in an in-state natural gas pipeline carrier's contracts or tariffs or
01 (A) that relate to an unreasonable diminution in the quantity or 02 quality in the provision of service to a public utility; 03 (B) that are a violation of the in-state natural gas pipeline 04 carrier's tariff or contract with the public utility; 05 (C) that have not been resolved by the in-state natural gas 06 pipeline carrier; and 07 (D) in which it clearly appears from specific facts shown by 08 affidavit or by verified complaint that immediate injury, loss, or damage will 09 result to the peace, health, safety, or general welfare of the public from a 10 violation; 11 (3) adopt regulations that are necessary and proper to the performance 12 of the duties of the commission under this chapter, including regulations governing 13 practices and procedures of the commission; regulations adopted by the commission 14 may not be inconsistent with state law; 15 (4) initiate, intervene in, and appear personally or by counsel and offer 16 evidence in and participate in, proceedings before an officer, department, board, 17 commission, or court of this state involving an in-state natural gas pipeline carrier and 18 affecting the interests of the state; and 19 (5) appoint a qualified, unbiased, and impartial administrative law 20 judge with experience in the general practice of law to conduct hearings under this 21 chapter; the administrative law judge may perform other duties in connection with the 22 administration of this chapter and other laws; an administrative law judge hired to 23 conduct hearings under this chapter shall have been admitted to practice law for at 24 least five years immediately before appointment under this paragraph. 25 (c) The commission may not 26 (1) require rates, rate design, or tariff rules or regulations except as 27 provided in this chapter; and 28 (2) conduct further review, investigate, or order a modification of a 29 contract that is approved, considered approved, or filed under this chapter. 30 Sec. 42.08.230. Commission decision-making procedures. The commission 31 shall comply with AS 42.04.080(a) and expeditiously adjudicate all matters that come
01 before the commission. 02 Sec. 42.08.240. Publication of reports, orders, decisions, and regulations. 03 All reports, orders, decisions, and regulations of the commission shall be in writing. 04 The commission shall notify all affected operators of in-state natural gas pipeline 05 facilities and interested parties of reports, orders, decisions, and regulations as they are 06 issued and adopted and, when appropriate, publish them in a manner that will 07 reasonably inform the public or the affected consumers of the services of an in-state 08 natural gas pipeline facility. The commission may set charges for costs of printing or 09 reproducing and furnishing copies of reports, orders, decisions, and regulations. The 10 publication requirement, as it pertains to regulations, does not supersede the 11 requirements of AS 44.62 (Administrative Procedure Act). 12 Sec. 42.08.250. Application of Administrative Procedure Act. (a) The 13 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 14 do not apply to adjudicatory proceedings of the commission under this chapter, except 15 that final administrative determinations by the commission are subject to judicial 16 review under AS 44.62 (Administrative Procedure Act) as provided in AS 42.08.530. 17 (b) AS 44.62 (Administrative Procedure Act) applies to regulations adopted 18 by the commission. 19 Sec. 42.08.260. Annual report. The commission shall include in its annual 20 reports under AS 42.05.211 and AS 42.06.220 a review of its activities under this 21 chapter during the previous fiscal year. The report must address the regulation of in- 22 state natural gas pipeline facilities in the state as of June 30 of each year and must 23 contain details about the commission's compliance with the performance measures in 24 this chapter. 25 Article 3. Contract Review; Contract Carriage Certificate; Open Seasons. 26 Sec. 42.08.300. Open seasons. (a) An in-state natural gas pipeline carrier shall 27 publish reasonable public notice in advance of an open season. The notice shall 28 contain the proposed recourse tariff, the proposed form of the precedent agreement, 29 the proposed form of the firm transportation service agreement, and other information 30 sufficient to show the proposed route, capacity, operating pressures, in-service date, 31 quality specifications, and other operating conditions that the pipeline carrier
01 determines are relevant to an evaluation of the proposed service. The notice shall also 02 state the methods for awarding capacity and whether presubscription agreements have 03 been executed. An in-state natural gas pipeline carrier shall provide a mechanism for 04 providing additional relevant information requested by potential shippers. 05 (b) An open season shall be conducted and firm transportation service shall be 06 awarded without undue discrimination or preference. 07 (c) An in-state natural gas pipeline carrier shall conduct an open season for 08 firm transportation service when it has existing uncommitted firm transportation 09 capacity and has received a request for firm transportation capacity from one or more 10 potential shippers that meet the pipeline's creditworthiness requirements. 11 (d) An in-state natural gas pipeline carrier shall conduct an open season for an 12 expansion of its pipeline system when it has received one or more requests for firm 13 transportation service from potential shippers that meet the pipeline's creditworthiness 14 requirements and that, in the aggregate, would enable the expansion of the pipeline's 15 system on a commercially reasonable basis. An expansion of the pipeline system is not 16 commercially reasonable if the expansion would cause the pipeline to be a competing 17 natural gas pipeline project as defined in AS 43.90.440 unless the project for which a 18 license is issued under AS 43.90 has been abandoned or is no longer receiving the 19 inducements in AS 43.90.110(a). 20 (e) A natural gas pipeline carrier may enter into presubscription agreements 21 before the start of an open season. 22 Sec. 42.08.310. Transportation service. (a) Firm transportation service shall 23 be made available only through a presubscription agreement or an open season 24 conducted in accordance with AS 42.08.300. 25 (b) The pipeline carrier shall offer a recourse tariff for firm transportation 26 service. The rates included in the recourse tariff shall be determined on a cost-of- 27 service basis. The recourse tariff may not preclude the pipeline carrier from collecting 28 rolled-in rates so long as the resulting rate for prior shippers does not exceed the initial 29 maximum rate allowable under agreements for capacity. 30 (c) An in-state natural gas pipeline carrier may contract to provide firm 31 transportation service on terms and for rates different than those in the recourse tariff.
01 (d) An in-state natural gas pipeline carrier shall provide interruptible 02 transportation service through capacity not used for firm transportation service. An in- 03 state natural gas pipeline carrier shall establish means for routinely advising potential 04 shippers of the availability of interruptible transportation service. 05 Sec. 42.08.320. Review of certain contracts by the commission. (a) An in- 06 state natural gas pipeline carrier shall submit each of its precedent agreements for firm 07 transportation service to the commission. A precedent agreement negotiated with an 08 entity that is not a public utility regulated by the commission may be filed under seal. 09 Under AS 42.08.400, the commission shall keep confidential a precedent agreement 10 filed under seal. Submission of precedent agreements to the commission is permissible 11 before construction of an in-state natural gas pipeline and before a request for 12 certification under this chapter. 13 (b) In the review of a precedent agreement submitted under (a) of this section 14 or a related contract submitted under AS 42.05.433(b) or (c), the commission shall 15 (1) conclude that a precedent agreement or related contract negotiated 16 at arm's length between the parties is just and reasonable unless the commission finds 17 that unlawful market activity affected the rate or unfair dealing, such as fraud or 18 duress, affected the formation of the contract; 19 (2) review and may conduct an investigation and hearing to determine 20 whether a contract submitted under (a) of this section is just and reasonable; the 21 commission shall either approve the contract as presented or, if the commission finds 22 that a contract is not just and reasonable, disapprove the contract; if the commission 23 has not acted within 180 days after the submission of a contract, the contract shall be 24 considered approved and shall take effect immediately; a contract that is approved or 25 considered approved under this paragraph and the associated firm transportation 26 agreement are not subject to further review by the commission. 27 (c) For purposes of (b)(1) of this section, a precedent agreement or related 28 contract is arm's length 29 (1) if it incorporates the recourse tariff; or 30 (2) if it does not incorporate the recourse tariff, 31 (A) the precedent agreement or related contract is between two
01 state-owned parties; 02 (B) the parties are not affiliated; or 03 (C) if the parties are affiliated, the precedent agreement or 04 related contract is substantially similar to a precedent agreement or related 05 contract between unaffiliated parties. 06 (d) If a precedent agreement or related contract is not arm's length, the 07 commission shall determine whether the precedent agreement or related contract is 08 just and reasonable using the standards normally applied under AS 42.06.140. If the 09 commission is reviewing a precedent agreement, the natural gas pipeline carrier shall 10 provide to the commission a cost study that shall be used solely for the purpose of this 11 subsection. When considering whether to approve a contract as just and reasonable 12 under this subsection, the commission shall consider the consequences of failing to 13 approve the contract. 14 Sec. 42.08.330. Contract carriage certificate. (a) The owner of an in-state 15 natural gas pipeline subject to this chapter may not engage in the transportation of 16 natural gas or undertake the construction of a natural gas pipeline facility for that 17 purpose, or acquire or operate an in-state natural gas pipeline facility, unless a 18 certificate of public convenience and necessity by the commission authorizing contract 19 carriage is in force with respect to that owner. A certificate shall describe the nature 20 and extent of the authority granted, including, as appropriate for the services involved, 21 a description of the authorized area and scope of operation for the in-state natural gas 22 pipeline facility. 23 (b) Application for a certificate shall be made in writing to the commission 24 and verified under oath. The commission by regulation shall establish the 25 requirements for the form of the application and the information to be contained in the 26 application. Notice of the application shall be provided to interested parties in the 27 manner provided by regulation. 28 (c) Within 180 days after receiving an application under this chapter, a 29 contract carriage certificate shall be issued to a qualified applicant, authorizing, in 30 whole or in part, the operation, service, construction, or acquisition covered by the 31 application, if the commission finds that the applicant is fit, willing, and able to do the
01 acts, perform the proposed service, and conform to the provisions of this chapter and 02 the requirements of the commission, and that the proposed service, operation, 03 construction, extension, or acquisition, to the extent authorized by the certificate, is or 04 will be required by the present or future public convenience and necessity. The 05 application must be denied if the commission fails to find that the applicant is fit, 06 willing, and able under this subsection. 07 (d) The commission may attach to a contract carriage certificate reasonable 08 terms and conditions that are consistent with the terms of this chapter and are for the 09 mutual benefit of the in-state natural gas pipeline facility and the public. 10 (e) Operating authority may not be transferred by sale or lease of the contract 11 carriage certificate or by the sale of substantially all of the stock or assets of a pipeline 12 carrier holding a certificate without prior approval and a finding by the commission 13 that the safe and efficient operation of the natural gas pipeline is not impaired by the 14 transfer. The commission shall summarily approve a transfer not involving a 15 substantial change in ownership. 16 (f) After receiving a complaint or on its own motion, the commission, after 17 notice and hearing and for good cause shown, may amend, modify, suspend, or 18 revoke, in whole or in part, a certificate. Good cause for amendment, modification, 19 suspension, or revocation of a certificate is shown by 20 (1) misrepresentation of a material fact in obtaining the certificate; 21 (2) unauthorized discontinuance or abandonment of all or part of a 22 service that is the subject of the certificate; 23 (3) wilful failure to comply with the provisions of this chapter or a 24 regulation or order of the commission; or 25 (4) wilful failure to comply with a term, condition, or limitation of the 26 certificate. 27 (g) A person holding a certificate issued under this chapter may not abandon 28 or permanently discontinue the use of all or a portion of an in-state natural gas pipeline 29 without permission and approval by the commission, after due notice and hearing and 30 a finding by the commission that continued service is not required by public 31 convenience and necessity. An interested person may file a protest or memorandum of
01 opposition to or in support of discontinuance or abandonment with the commission. 02 The commission may order the temporary suspension of a service or part of a service. 03 Sec. 42.08.340. Filing requirements; public inspection. (a) An in-state 04 natural gas pipeline carrier shall file with the commission all recourse tariffs, rules, 05 regulations, terms, and conditions pertaining to service provided under the certificate 06 and copies of all contracts with shippers that in any way affect or relate to the carrier's 07 rates, tariffs, charges, classifications, rules, regulations, terms, and conditions to 08 service provided under the certificate. The in-state natural gas pipeline carrier shall 09 maintain copies on file at its principal business office and at places designated by the 10 commission and make the copies available to, and subject to inspection by, the general 11 public on demand. Rules, regulations, terms, and conditions not included in the tariff 12 of an in-state natural gas pipeline carrier shall be included in the contract with each 13 shipper. 14 (b) The terms and conditions under which an in-state natural gas pipeline 15 carrier offers its services and facilities to the public shall be governed strictly by the 16 provisions of the tariffs and filed contracts that are in effect. A change in tariff rate, 17 charge, rule, regulation, or condition of service is not effective until filed under (a) of 18 this section. If more than one tariff rate or charge may reasonably be applied for 19 billing purposes, the tariff rate or charge most advantageous to the shipper shall be 20 used. 21 Sec. 42.08.350. Uniform system of accounts. An in-state natural gas pipeline 22 carrier operating under this chapter shall maintain its records and accounts in 23 accordance with the uniform system of accounts for class A natural gas pipelines in 18 24 C.F.R. 201 (Federal Energy Regulatory Commission), as amended. 25 Sec. 42.08.360. Expansion; dispute resolution. (a) A contract entered into by 26 an in-state natural gas pipeline carrier may provide for expansion unless the expansion 27 would cause the pipeline to be a competing natural gas pipeline project as defined in 28 AS 43.90.440 unless the project for which a license is issued under AS 43.90 has been 29 abandoned or is no longer receiving the inducements in AS 43.90.110(a). 30 (b) A contract entered into by an in-state natural gas pipeline carrier shall 31 include dispute resolution procedures.
01 Sec. 42.08.370. Regulatory cost charge. (a) Each year, a person operating an 02 in-state natural gas pipeline under this chapter shall pay to the commission a 03 regulatory cost charge if the pipeline for which the charge is assessed is subject to this 04 chapter and the commission has taken action on the pipeline or certificate under this 05 chapter during the prior fiscal year. The amount of the regulatory cost charge may not 06 exceed the sum of the following percentages of gross revenue derived from operations 07 in the state: 08 (1) 0.7 percent to fund the operations of the commission; and 09 (2) 0.17 percent to fund operations of the public advocacy function 10 under AS 42.04.070(c) and AS 44.23.020(e) in the Department of Law. 11 (b) The commission shall by regulation establish a method to determine 12 annually the amount of the regulatory cost charge that will apply to a pipeline 13 regulated under this chapter. If the amount the commission expects to collect under (a) 14 of this section, AS 42.05.254(a), and AS 42.06.286(a) exceeds the authorized budgets 15 of the commission and the Department of Law public advocacy function under AS 16 42.04.070(c) and AS 44.23.020(e), the commission shall, by order, reduce the 17 percentage determined under a regulation adopted under this subsection so that the 18 total amount of the fees collected approximately equals the authorized budgets of the 19 commission and the Department of Law public advocacy function under AS 20 42.04.070(c) and AS 44.23.020(e) for the fiscal year. 21 (c) The commission shall administer the charge imposed under this section. 22 The Department of Revenue shall collect and enforce the charge imposed under this 23 section. The Department of Administration shall identify the amount of the operating 24 budgets of the commission and the Department of Law public advocacy function 25 under AS 42.04.070(c) and AS 44.23.020(e) that lapse into the general fund each year. 26 The legislature may appropriate an amount equal to the lapsed amount to the 27 commission and to the Department of Law public advocacy function under AS 28 42.04.070(c) and AS 44.23.020(e) for operating costs for the next fiscal year. If the 29 legislature does so, the commission shall reduce the total regulatory cost charge 30 collected for that fiscal year by a comparable amount. 31 (d) The commission may adopt regulations under AS 44.62 (Administrative
01 Procedure Act) necessary to administer this section, including procedures and 02 requirements for reporting information and a requirement for paying the regulatory 03 cost charge in quarterly payments. The Department of Revenue may adopt regulations 04 under AS 44.62 (Administrative Procedure Act) for investigating the accuracy of filed 05 information and for collecting required payments. 06 Sec. 42.08.380. Effect of chapter on taxes and royalties. Nothing in this 07 chapter shall alter the calculation of a production tax under AS 43.55.011 - 43.55.180 08 or the calculation of a royalty due for a lease issued under AS 38.05.180. 09 Article 4. Records; Investigations. 10 Sec. 42.08.400. Public records. (a) Except as provided in (b) and (c) of this 11 section or prohibited from disclosure under state or federal law, records in the 12 possession of the commission are open to public inspection at reasonable times. 13 (b) The commission may by regulation classify records received from an in- 14 state natural gas pipeline carrier or in-state natural gas pipeline as privileged records 15 that are not open to the public for inspection. 16 (c) A record filed with the commission that is a precedent agreement between 17 an in-state natural gas pipeline carrier and an unregulated entity is a privileged record 18 that is not open to the public for inspection. For a record that relates to a precedent 19 agreement, or is or relates to a contract other than a precedent agreement between an 20 in-state natural gas pipeline carrier and an unregulated entity, if an in-state natural gas 21 pipeline carrier identifies the provisions of the record that contain information that, if 22 disclosed, could adversely affect the competitive position of the shipper or could cause 23 commercial or competitive harm or damage if disclosed and the commission agrees, 24 the information shall be treated by the commission as confidential. 25 (d) A person may make written objection to the public disclosure of 26 information contained in a record filed under this chapter or of information obtained 27 by the commission or by the attorney general under this chapter, stating the grounds 28 for the objection. When an objection is made, the commission shall order the 29 information withheld from public disclosure if the information adversely affects the 30 interest of the person making written objection and disclosure is not required in the 31 interest of the public.
01 (e) A commissioner may certify as to all official records of the commission 02 under this section and may certify as to all official acts of the commission under this 03 chapter. 04 Sec. 42.08.410. Investigations. The commission may investigate any matter 05 for which an investigation is authorized under this chapter. An investigation may be 06 public, nonpublic, or both. In conducting an investigation, the commission may 07 compel the attendance and testimony of witnesses and the production of records and 08 testimony before the commission or its designee. In the course of an investigation, the 09 commission may, subject to AS 44.23.020(e), exclude from attendance at the taking of 10 investigative testimony all persons except a person compelled to attend, that person's 11 attorney, members of the commission or the commission's staff, and a person 12 authorized to transcribe the proceedings. 13 Article 5. General Provisions. 14 Sec. 42.08.510. Designation of service agents. An in-state natural gas pipeline 15 carrier shall file with the commission a written appointment of a named permanent 16 resident, which may be a corporation, of this state as its registered agent in this state 17 on whom service of all notices, regulations, and requests of the commission may be 18 made. The appointment shall specify the address in this state of the appointed agent. 19 The address may be changed from time to time by filing a new address in the state 20 with the commission. If an in-state natural gas pipeline carrier fails to appoint a 21 registered agent, service of notices, regulations, and requests may be made by posting 22 a copy in the main office of the commission and filing a copy in the office of the 23 lieutenant governor. 24 Sec. 42.08.520. Effect of regulations. Regulations adopted by the commission 25 under this chapter have the effect of law. 26 Sec. 42.08.530. Judicial review and enforcement. (a) Except as provided in 27 AS 38.35.200(c), a final order of the commission under this chapter is subject to 28 judicial review under AS 44.62.560 and 44.62.570. 29 (b) If an appeal is not taken from a final order of the commission within 10 30 calendar days after an investigation under AS 42.08.220(b)(2), the commission may 31 apply to the superior court for enforcement of the order of the commission. The court
01 shall enforce the order by injunction or other process. 02 Sec. 42.08.540. Joinder of actions. Under the applicable court rules, appeals 03 from orders of the commission and applications for enforcement of orders of the 04 commission may be joined. The court may, in the interests of justice, separate the 05 actions. 06 Sec. 42.08.900. Definitions. In this chapter, 07 (1) "commission" means the Regulatory Commission of Alaska (AS 08 42.04.010); 09 (2) "commissioner" means a member of the commission; 10 (3) "firm transportation service" means service by a natural gas 11 pipeline carrier that is not subject to a prior claim by another shipper or another class 12 of service; service constitutes "firm transportation service" if the service receives the 13 same priority as any other class of firm transportation service; 14 (4) "in-state natural gas pipeline" or "in-state natural gas pipeline 15 facility" means a natural gas pipeline that transports natural gas in the state by way of 16 contract carriage; 17 (5) "in-state natural gas pipeline carrier" means the owner, including a 18 corporation, company, or other entity organized under the laws of the United States or 19 of any state, of an in-state natural gas pipeline or an interest in it, or a person, 20 including a corporation, company, or other entity organized under the laws of the 21 United States or of any state, that transports natural gas as a contract carrier; 22 (6) "natural gas pipeline" has the meaning given in AS 38.34.099; 23 (7) "precedent agreement" means a contractual commitment to acquire 24 firm transportation capacity, executed between an in-state natural gas pipeline carrier 25 and another person, that establishes the rates, terms, and conditions for service; 26 (8) "record" means a report, file, book, account, paper, or application 27 and the facts and information contained in it. 28 * Sec. 34. AS 43.56.020 is amended by adding a new subsection to read: 29 (d) Taxable property of a natural gas pipeline project owned or financed by 30 the Alaska Gasline Development Corporation or a joint venture, partnership, or other 31 entity that includes the Alaska Gasline Development Corporation is exempt from state
01 taxes levied or authorized under AS 43.56.010(a) and local taxes levied or authorized 02 under AS 43.56.010(b) before the commencement of commercial operations of that 03 natural gas pipeline project. In this subsection, "commencement of commercial 04 operations" means the first flow of natural gas in the project that generates revenue to 05 the owners of the natural gas pipeline project. 06 * Sec. 35. AS 36.30.850(b)(45); AS 38.34.030, 38.34.040, 38.34.050, 38.34.060; AS 07 41.41.030, 41.41.040, 41.41.050, 41.41.080, 41.41.100, and 41.41.990(4) are repealed. 08 * Sec. 36. Section 1, 2002 Ballot Measure No. 3, is repealed. 09 * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITION AND LEGISLATIVE INTENT. (a) It is the intent of the legislature 12 that a right-of-way lease subject to AS 31.25.090(d), enacted by sec. 3 of this Act, AS 13 38.35.100(d), as amended by sec. 8 of this Act, AS 38.35.120(a), as amended by sec. 9 of this 14 Act, AS 38.35.120(b), as amended by sec. 10 of this Act, and AS 38.35.121, enacted by sec. 15 11 of this Act, that is entered into between the commissioner of natural resources and the 16 Alaska Gasline Development Corporation before the effective dates of secs. 3 and 8 - 11 of 17 this Act be amended as soon as practicable after the effective dates of secs. 3 and 8 - 11 of this 18 Act to conform to the requirements of AS 31.25.090(d), enacted by sec. 3 of this Act, AS 19 38.35.100(d), as amended by sec. 8 of this Act, AS 38.35.120(a), as amended by sec. 9 of this 20 Act, AS 38.35.120(b), as amended by sec. 10 of this Act, and AS 38.35.121, enacted by sec. 21 11 of this Act. 22 (b) The transition of the Alaska Gasline Development Corporation from a subsidiary 23 of the Alaska Housing Finance Corporation to an independent public corporation of the state 24 may not disrupt, interfere, or alter the work of the Alaska Gasline Development Corporation. 25 The governor shall appoint the board of the Alaska Gasline Development Corporation as soon 26 as practicable after the effective date of this Act. It is the intent of the legislature that the 27 governor appoint the new board of the Alaska Gasline Development Corporation within 90 28 days after the effective date of this Act. The board of the Alaska Housing Finance 29 Corporation shall serve as the board of the Alaska Gasline Development Corporation until the 30 governor appoints the board of the Alaska Gasline Development Corporation under this 31 subsection. The board of directors of the Alaska Gasline Development Corporation shall work
01 with the board of directors of the Alaska Housing Finance Corporation and the commissioner 02 of commerce, community, and economic development to ensure the smooth transition of the 03 Alaska Gasline Development Corporation to being an independent public corporation, 04 including modifying the articles of incorporation of the Alaska Gasline Development 05 Corporation. 06 (c) It is the intent of the legislature that the transition of the Alaska Gasline 07 Development Corporation to being an independent public corporation of the state located for 08 administrative purposes in the Department of Commerce, Community, and Economic 09 Development be treated for all purposes only as a change of placement within the state and 10 not as the creation of a new public corporation of the state. 11 (d) It is the intent of the legislature that the Alaska Housing Finance Corporation, the 12 board of directors of the Alaska Gasline Development Corporation as a subsidiary created 13 under AS 18.56.086 by the Alaska Housing Finance Corporation, and the commissioner of 14 commerce, community, and economic development expeditiously amend the articles of 15 incorporation, the bylaws, and other documents of the Alaska Gasline Development 16 Corporation to reflect the change in the placement of the Alaska Gasline Development 17 Corporation from being a subsidiary of the Alaska Housing Finance Corporation to being an 18 independent public corporation of the state as provided in AS 31.25, enacted by sec. 3 of this 19 Act. 20 (e) It is the intent of the legislature that the Alaska Housing Finance Corporation and 21 the commissioner of commerce, community, and economic development coordinate the 22 transition of the Alaska Gasline Development Corporation to its new placement within the 23 state as an independent public corporation of the state and assist the newly appointed board of 24 directors of the Alaska Gasline Development Corporation to ensure that the development of 25 an in-state natural gas pipeline is not unreasonably delayed because of the change in 26 placement within the state of the corporation. 27 * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 REVISOR'S INSTRUCTIONS. The revisor of statutes shall change the catch lines of 30 (1) AS 38.35.120 from "Covenants required to be included in lease" to 31 "Covenants required to be included in lease to a pipeline that is not a natural gas pipeline
01 contract carrier"; and 02 (2) AS 38.35.200 from "Judicial review of decisions of commissioner on 03 application" to "Judicial review." 04 * Sec. 39. This Act takes effect immediately under AS 01.10.070(c).