2014-01-24                     House Journal                      Page 1433
Furthermore, gas flared, released, or allowed to escape upstream of the                                                         
point of production, or gas used on a lease or property would not be                                                            
subject to an in-kind election.                                                                                                 
                                                                                                                                
The bill would make changes to provisions in current law to facilitate                                                          
the new gross tax levy on gas. The name of a producer and the                                                                   
volumes of gas subject to the election to pay tax as gas would be                                                               
public information. The alternate minimum tax on North Slope oil and                                                            
gas would apply only to oil after 2021. The bill accounts for how                                                               
producers make estimated monthly installment payments of tax due                                                                
after 2021 and clarifies that credits may be taken only against the tax                                                         
levy in money, not against the levy in-kind.                                                                                    
                                                                                                                                
Development of natural gas projects of this scope is a new chapter in                                                           
State resource development that will be enhanced by the State's equity                                                          
participation in either project. Given the momentum on developing                                                               
North Slope gas, we must act now to assure that our laws provide the                                                            
appropriate agencies with authorities and tools to allow the State to                                                           
advance projects on Alaska's terms and in Alaskans interests.                                                                   
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"                                                                                                                       
                                                                                                                                
HB 278                                                                                                                        
HOUSE BILL NO. 278 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act increasing the base student allocation used in the formula                                                         
     for state funding of public education; repealing the secondary                                                             
     student competency examination and related requirements;                                                                   
     relating to high school course credit earned through assessment;                                                           
     relating to a college and career readiness assessment for secondary                                                        
     students; relating to charter school application appeals and                                                               
     program budgets; relating to residential school applications;                                                              
     increasing the stipend for boarding school students; extending                                                             
     unemployment contributions for the Alaska technical and