2005-01-12                     Senate Journal                      Page 0045
Department of Natural Resources anticipates that leases would not be                                
issued until the spring of 2006.  Given this timetable, it is likely that                           
exploration expenditures on these leases would occur after July 1,                                  
2007, in which case they could not be credited against future                                       
production taxes.                                                                                   
                                                                                                    
In order to provide similar tax incentives to the bidders on these                                  
proposed oil and gas leases, this bill would extend the deadline for                                
exploration expenditures in the proposed Bristol Bay (Alaska                                        
Peninsula) competitive oil and gas areawide lease sale area to                                      
July 1, 2010.  This bill also would make some minor technical changes                               
to AS 43.55.025 to clarify the intent and harmonize terms used in that                              
recently enacted section.                                                                           
                                                                                                    
I urge your support of this important legislation.                                                  
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
                                                                                                    
                        Consideration of the Calendar                                            
                                                                                                    
                     Second Reading of Senate Resolutions                                        
                                                                                                    
SR 1                                                                                              
SENATE RESOLUTION NO. 1 was read the second time and was                                            
before the Senate on final passage.                                                                 
                                                                                                    
The question being: "Shall SENATE RESOLUTION NO. 1                                                  
Establishing a Senate Special Committee on World Trade and                                          
State/Federal Relations, pass the Senate?" The roll was taken with the                              
following result: