2001-01-08                     House Journal                      Page 0034
was read the first time and referred to the House Special Committee on                              
Education, and the Health, Education & Social Services and Finance                                  
Committees.                                                                                         
                                                                                                    
HB 38                                                                                             
HOUSE BILL NO. 38 by the House Rules Committee by request of                                        
the Governor, entitled:                                                                             
                                                                                                    
     "An Act amending the application deadline, and the standards                                   
     applicable to determining whether a proposed new investment                                    
     constitutes a qualified project, for purposes of the Alaska Stranded                           
     Gas Development Act; and providing for an effective date."                                     
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Oil & Gas, and the Resources and Finance Committees.                                                
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Natural Resources                                                                
                                                                                                    
The Governor's transmittal letter dated January 8, 2001, appears                                    
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
Alaska must ensure that our fiscal regime is an incentive to the                                    
commercialization of our natural gas, not an impediment.  To provide                                
the State with the appropriate tools to achieve this goal I am                                      
transmitting this bill to amend the Alaska Stranded Gas Development                                 
Act to allow any potentially successful natural gas project to take                                 
advantage of the provisions of that Act.                                                            
                                                                                                    
The Alaska Stranded Gas Development Act (Act) allows the                                            
commissioner of the Department of Revenue to negotiate a contract                                   
for payments in lieu of taxes for a certain type of project that will                               
develop the enormous natural gas resources of Alaska's North Slope.                                 
                                                                                                    
The potential benefits of the current program are limited to liquefied                              
natural gas (LNG) projects.  Developments in the international natural                              
gas marketplace -- particularly the recent energy price increases in