Legislature(2013 - 2014)
2013-03-27 House JournalFull Journal pdf
2013-03-27 House Journal Page 0674 HB 188 HOUSE BILL NO. 188 by the House Rules Committee by request of the Governor, entitled: "An Act approving and ratifying the sale of royalty oil by the State of Alaska to Flint Hills Resources Alaska, LLC; and providing for an effective date." was read the first time and referred to the Finance Committee. The following fiscal note(s) apply: 1. Indeterminate, Dept. of Natural Resources 2013-03-27 House Journal Page 0675 The Governor's transmittal letter dated March 26, 2013, follows: "Dear Speaker Chenault: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill approving and ratifying the sale of royalty oil by the State of Alaska to Flint Hills Resources Alaska, LLC. The bill would approve and ratify the contractual agreement for the sale and purchase of State royalty oil between the State of Alaska and Flint Hills Resources Alaska, LLC, attached as Exhibit 1 to the "Final Best Interest Finding and Determination for the Sale of Alaska North Slope Royalty Oil to Flint Hills Resources Alaska, LLC" dated March 25, 2013. The contract that is the subject of this bill provides that the State will sell Flint Hills Resources Alaska, LLC an amount of the State's royalty oil that is between 18,000 to 30,000 barrels per day, subject to certain limitations and volume reduction provisions. The royalty oil will be sold at a price calculated to equal or exceed the value the State would obtain for the royalty oil if it was taken in-value and sold by the producers rather than taken in-kind and sold by the State to Flint Hills Resources Alaska. The term of the contract is five years, with royalty oil deliveries commencing on April 1, 2014, and terminating on March 31, 2019, with provisions to extend the contract subject to legislative approval. The proposed sale was reviewed by the Alaska Royalty Oil and Gas Development Advisory Board through a public hearing process held February 26, 2013. In accordance with AS 38.06.050, the board issued a written recommendation for legislative approval of the sale. I urge your prompt and favorable action on this measure. A copy of the contract will be provided by the Department of Natural Resources for your review. Sincerely, /s/ Sean Parnell Governor"