Legislature(1997 - 1998)
1998-03-12 Senate Journal
Full Journal pdf1998-03-12 Senate Journal Page 2844 SB 342 SENATE BILL NO. 342 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act approving the sale of Prudhoe Bay Unit royalty oil by the State of Alaska to Mapco Alaska Petroleum, Inc.; and providing for an effective date. was read the first time and referred to the Resources and Finance Committees. The following reports relating to SENATE BILL NO. 342 and HOUSE BILL NO. 469 were received and will be published in House and Senate Joint Journal Supplement No. 16 Agreement for the Sale and Purchase of State Royalty Oil to Mapco Alaska Petroleum, Inc. from the Department of Natural Resources Final Finding and Determination to Sell Royalty Oil to Mapco Alaska Petroleum, Inc. from the Department of Natural Resources The Alaska Royalty Oil and Gas Development Advisory Board, Resolution 98-1 Fiscal note published today from Department of Natural Resources. Governors transmittal letter dated March 10: Dear President Miller: I am transmitting a bill that provides for legislative approval of a royalty oil contract between the state and Mapco Alaska Petroleum, Inc. for the sale of Prudhoe Bay Unit royalty oil. A copy of the resolution of the Alaska Royalty Oil and Gas Development Advisory Board, recommending approval of that contract in accordance with 1998-03-12 Senate Journal Page 2845 SB 342 AS 38.06.040(a)(3) and 38.06.050(a) and providing the report required by AS 38.06.070(c), is also being provided to the Legislature with this bill. Under the contract, the state will receive a fair value for the royalty oil, while promoting in-state processing and petroleum product competition. Among the economic benefits to Alaska's citizens are competitive consumer prices for petroleum products, such as gasoline, diesel and jet fuels, and employment of Alaskans at Mapco's North Pole refinery. Copies of the commissioner's preliminary finding and the draft contract have been sent to the legislature and made available to the public for review. The commissioner's final finding and the signed contract are attached. I respect the Legislature's desire to have a direct voice in major disposals of royalty oil. Therefore, although this and previous administrations have consistently taken the position the statutory requirement of legislative approval of royalty oil contracts is unconstitutional, as a matter of comity, I am introducing a bill approving and ratifying the contract. The contract is consistent with provisions requiring approval by the Legislature before it takes effect. I urge your prompt consideration and passage of this bill. Sincerely, /s/ Tony Knowles Governor