1994-02-09                     Senate Journal                      Page 2754
SB 287                                                                       
SENATE BILL NO. 287 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
"An Act making a supplemental appropriation to the                            
Department of Law to pay costs of certain                                      
continuing legal proceedings; and providing for an                             
effective date."                                                               
                                                                               
was read the first time and referred to the Judiciary and Finance              
Committees.                                                                    
                                                                               
Governor's transmittal letter dated February 9:                                
                                                                               
Dear Mr. President:                                                            
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution,          
I am transmitting a bill making a supplemental appropriation to the            
Department of Law for costs and expenses related to certain oil and            
gas legal proceedings.  Due to the urgent need for this supplemental           
appropriation, the bill has an immediate effective date, and I urge            
your early consideration of this important bill.                               
                                                                               
The supplemental appropriation of $15,950,000 is essential for the             
state to stay on track in its important oil and gas legal proceedings.         
Several of these proceedings are scheduled for trial or formal                 
administrative hearings in the near future.  Continued diligent                
preparation is necessary for the successful resolution of these                
complex matters, which could bring millions of dollars into the state          
treasury.                                                                      
                                                                               
This supplemental appropriation is needed to process the millions of           
documents to be collected and produced, to review documents                    
supplied by adversaries, to hire experts, to conduct and defend                
depositions, and to do other essential litigation preparation.  Without        

1994-02-09                     Senate Journal                      Page 2755
SB 287                                                                       
the early enactment of this supplemental request, the Department of            
Law may be forced to slow its litigation at the most crucial pretrial          
or prehearing period and could fail to meet deadlines imposed by the           
court or administrative agencies for resolution of those disputes.  An         
appropriation is also necessary to keep an audit of the TransAlaska            
Pipeline System (TAPS) on schedule so that the findings may be                 
used to contest tariffs.                                                       
                                                                               
We all agree that the resolution of these long-standing oil and gas            
disputes is in the state's best interest, especially now when our              
revenue forecasts show declining receipts for the near future.  The            
supplemental appropriation will help maintain the momentum and                 
progress that we have all achieved in resolving such matters and in            
gaining additional revenue for the state.                                      
                                                                               
The Department of Law originally requested $25,000,000 for oil and             
gas legal proceedings for Fiscal Year 1994.  The legislature                   
appropriated only $10,358,400 of that request.  The supplemental               
appropriation request, if granted, would bring the total appropriations        
for these matters to $26,308,400.                                              
                                                                               
I urge your early consideration and passage of this important                  
legislation.                                                                   
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Walter J. Hickel                                                         
						Governor