1998-05-12                     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.