Legislature(1997 - 1998)
1998-05-12 Senate Journal
Full Journal pdf1998-05-12 Senate Journal Page 4155 HB 393 Senator Pearce requested that the reconsideration on SENATE CS FOR CS FOR HOUSE BILL NO. 393(FIN) An Act relating to contracts with the state establishing payments in lieu of other taxes by a qualified sponsor or qualified sponsor group for projects to develop stranded gas resources in the state; providing for the inclusion in the contracts of terms making certain adjustments regarding royalty value and the timing and notice of the states right to take royalty in kind or in value from projects to develop stranded gas resources in the state; relating to the effect of the contracts on municipal taxation; and providing for an effective date be taken up. The bill was before the Senate on reconsideration. Senator Pearce called the Senate. Senator Pearce lifted the call. Senator Kelly offered the following Letter of Intent: Letter of Intent for SENATE CS FOR CS FOR HOUSE BILL NO. 393(FIN) It is the intent of the Senate that Alaska continue to work on any method of commercializing its stranded gas resources to maximize the value of these resources for the benefit of the people of the state. 1998-05-12 Senate Journal Page 4156 HB 393 While the state has studied gas development by means of a liquefied natural gas (LNG) project, no such state study has been performed on a gas-to-liquids conversion (GTL) project. For this reason, it would be premature for this legislation to apply to GTL. If, after an economic analysis, GTL is shown to be a viable option for gas commercialization, the Senate should consider amending the Stranded Gas Development Act (HB 393) to allow applications for an appropriate fiscal regime for such a project. Senator Kelly moved and asked unanimous consent for the adoption of the Letter of Intent. Without objection, the Senate Letter of Intent was adopted. The question to be reconsidered: Shall SENATE CS FOR CS FOR HOUSE BILL NO. 393(FIN) An Act relating to contracts with the state establishing payments in lieu of other taxes by a qualified sponsor or qualified sponsor group for projects to develop stranded gas resources in the state; providing for the inclusion in the contracts of terms making certain adjustments regarding royalty value and the timing and notice of the states right to take royalty in kind or in value from projects to develop stranded gas resources in the state; relating to the effect of the contracts on municipal taxation; and providing for an effective date pass the Senate? The roll was taken with the following result: SCS CSHB 393(FIN) Third Reading - On Reconsideration Effective Date YEAS: 20 NAYS: 0 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Green, Halford, Hoffman, Kelly, Leman, Lincoln, Mackie, Miller, Parnell, Pearce, Phillips, Sharp, Taylor, Torgerson, Ward, Wilken and so, SENATE CS FOR CS FOR HOUSE BILL NO. 393(FIN) passed the Senate on reconsideration with a Senate Letter of Intent. 1998-05-12 Senate Journal Page 4157 HB 393 Senator Taylor moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clause. Without objection, it was so ordered and the bill was referred to the Secretary for engrossment.