2004-01-14                     Senate Journal                      Page 1929
                                                                                                    
SB 265                                                                                            
SENATE BILL NO. 265 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
             "An Act relating to the schedule of proposed oil and                                  
                gas lease sales and to a related report to the                                     
          legislature; and providing for an effective date."                                        
                                                                                                    
was read the first time and referred to the Resources Committee.                                    
                                                                                                    
The following fiscal information was published today:                                               
     Fiscal Note No. 1, zero, Department of Natural Resources                                       
                                                                                                    
Governor's transmittal letter dated January 12:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the scheduling of                                
proposed oil and gas lease sales. This bill would allow the                                         
commissioner of the Department of Natural Resources to produce                                      
additional revenues for the State of Alaska from oil and gas lease sales                            
by quickly responding to changing industry, market, and other                                       
conditions. New areas, particularly frontier areas of the state, can be                             
brought into production sooner than currently possible. The bill would                              
still permit legislative review of the lease sale program.                                          
                                                                                                    
Currently, the commissioner is required to prepare a "Five Year                                     
Schedule of Proposed Oil And Gas Lease Sales" and submit it to the                                  
Legislature in January of the first regular session of each Legislature.                            
A proposed lease sale must be included in the schedule for at least two                             
calendar years before the sale can actually be held. This is a ponderous                            
process that makes it difficult to implement the most effective oil and                             
gas lease sale program possible.                                                                    
                                                                                                    
This bill is an important part of our mission to use natural resource                               
wealth to produce long-term, stable revenue sources for the state, local                            
and property tax revenue for municipalities, and high paying jobs for                               
Alaskans.